Which of the following will not cause demand for apples to increase or decrease: a) a reduction in the price of apples, b) a reduction in the price of a complement for apples, c) an increase in income, d) a decrease in the number of consumers in the market

Economics Jan 22, 2021

Which of the following will not cause demand for apples to increase or decrease:

a) a reduction in the price of apples,

b) a reduction in the price of a complement for apples,

c) an increase in income,

d) a decrease in the number of consumers in the market.

Expert Solution

The answer is a) a reduction in the price of apples.

Let us examine each of the options.

a) The demand curve shows the quantity demanded at each price point. As the price decreases, the quantity demanded will increase along the same demand curve, But will not shift the curve to its right (increase) or left (decrease).

b) A reduction in the price of a complement for apples will shift the demand curve of apple to the right.

c) An increase in income will shift the demand curve to the right.

d) A decrease in the number of consumers in the market will shift the demand curve to the left.

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