Which of the following is NOT a reason why the demand curve for apples will shift out and to the right? a

The answer is: e.The price of apples declines and d.Consumer income falls and apples are an inferior good. These actions will NOT shift the curve out. Increases in demand are shown on the demand curve by a shift to the right in the demand curve. If the curve shifts up as well it means the price follows demand. This is caused by several factors, including a rise in consumer income, a fall in the price of a complement, or a rise in the price of a substitute.

a.The price of bananas, a substitute good, rises. False, this is a rise in the price of a substitute, which will shift the curve out.

b.The price of cereal, a complementary good, falls. False, this is a fall in the price of a complement, which will shift the curve out.

c.Consumer income rises and apples are a normal good. False, a rise in income can create an increase in demand, which will shift the curve out.