Which of the following is not a cause of rightward shift of demand curve?
2021
Which of the following is not a cause of rightward shift of demand curve?
- A.
Favourable change in tastes
- B.
Increase in the price of a substitute good
- C.
Decrease in the price of a complementary good
- D.
Increase in income of the consumer for inferior good
Attempted by 3 students.
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Correct answer: D
A rightward shift in the demand curve indicates an increase in demand. This typically occurs due to favorable changes in tastes, higher prices of substitute goods, or lower prices of complementary goods. However, for an inferior good, demand decreases when consumer income rises because consumers switch to higher-quality alternatives. Therefore, increased income for an inferior good causes a leftward shift, making it the exception among the choices provided.