Question

Which of the following will NOT cause a shift in the demand curve for good X?

Answer 1

Answer:

A. A change in the price of good X. 

Explanation:

A demand curve plots price against quantity demanded. A change in price causes a movement along the demand curve according to the law of demand which says an increase in price leads to a reduction in quantity demanded and a fall in price leads to a rise in quantity demanded.

If the price of a complementary good increases, the demand for good x would fall and the demand curve would shift leftwards.

If income increases, and good x is a normal good, the demand curve would shift to the right.

If a change in taste and preference is in favour for good x, more of good x would be demanded and the demand curve would shift to the right.

I hope my answer helps.