Which of the following will increase the demand for a normal good? Group of answer choices A decrease in the number of consumers A decrease in the price of a substitute
Added by James H.
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A normal good has its demand increase when consumers' incomes rise (and related demand factors can shift demand right). Show more…
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James K.
Consider the standard consumer choice problem with fixed income. If the price of a normal good decreases, ceteris paribus, then ___________________________. Group of answer choices: A. The income effect will increase consumption of the good and the substitution effect will decrease consumption. B. The income effect and the substitution effect will both increase consumption of the good. C. The income effect will decrease consumption of the good and the substitution effect will increase consumption. D. The income effect and the substitution effect will both decrease consumption of the good.
Andrew D.
Explain the influence on demand (if any) of the given changes: A new, less expensive substitute good is introduced into the market. The price of a complementary good falls. The government opens up its borders to completely free immigration. The good in question becomes more popular with consumers. The cost of producing the good rises. There is an expectation of higher future prices. What would happen to present demand? It is a normal good and buyers' incomes increase. It is an inferior good and buyers' incomes rise. The price of the good rises. A change in technology makes production more efficient. The price of an independent good rises.
Jennifer S.
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