Question
an increase or decrease in which of the following factors would cause a shift in the demand curve for a given good? select the two correct answers.
income
number of sellers
price of related goods
input prices
price of the good
income
number of sellers
price of related goods
input prices
price of the good
Answers
GPT-4o mini
The two factors that would cause a shift in the demand curve for a given good are:
1. **Income** - Changes in consumers' income can affect their purchasing power and, consequently, the demand for goods. For example, an increase in income typically leads to an increase in demand for normal goods.
2. **Price of related goods** - The prices of substitutes and complements can also shift the demand curve. If the price of a substitute good increases, the demand for the good in question may increase, and vice versa for complementary goods.
The other factors listed (number of sellers, input prices, and price of the good) primarily affect supply rather than demand. Changes in the price of the good itself result in a movement along the demand curve rather than a shift of the curve.
1. **Income** - Changes in consumers' income can affect their purchasing power and, consequently, the demand for goods. For example, an increase in income typically leads to an increase in demand for normal goods.
2. **Price of related goods** - The prices of substitutes and complements can also shift the demand curve. If the price of a substitute good increases, the demand for the good in question may increase, and vice versa for complementary goods.
The other factors listed (number of sellers, input prices, and price of the good) primarily affect supply rather than demand. Changes in the price of the good itself result in a movement along the demand curve rather than a shift of the curve.