Question

Analyst 1 suggested that the demand curve for newspapers in Baltimore might have shifted to the right because people were becoming more literate. Think of two other plausible stories that would result in this demand curve shifting to the right.A. The demand curve for newspapers in Baltimore would shift to the right if income levels in the area are​ rising, since we expect newspapers to be a normal good.B. Fewer substitutes for newspapers would shift the curve to the rightlong dash perhaps television broadcasting is shifting away from news programs and toward reality shows.C. If the population of Baltimore is​ shrinking, it would shift the demand curve to the right.D. A and B only.E. A and C only.

Answer 1

Answer:

(D) A and B only

Explanation:

Two other plausible stories that could shift the demand for newspapers to the rights are:

A: If income levels are rising (and given that newspaper is a normal good). Due to this reason, we would expect more people in Baltimore who before now, were not buying newspaper due to their low income, to begin to buy, thus shifting the demand curve to the right.

B: fewer substitute. When the populace have no viable alternative to get news daily, more people are likely to buy newspaper, thus shifting the demand curve to the right.

Option C is incorrect as a shrinking population will translate to reduced demand resulting in a shift of the demand curve to the left.