alleryStart learning →Which change shifts a demand curve to the right?
ABuyers expect the price of the product to fall in future
BBuyers lose their taste for the product being offered
CThe number of buyers in the market starts to decrease
DBuyers expect the price of the product to rise in future
Answer & Solution
Correct answer: D. Buyers expect the price of the product to rise in future
1. Expectations about future prices are one of the factors that shift demand.
2. If buyers expect prices to rise significantly, they decide to buy today rather than later.
3. Buying brought forward means more is bought at every price, so the curve shifts to the right.
4. If buyers expect prices to fall, they postpone the purchase and demand shifts to the left.
5. Weaker tastes and a shrinking number of buyers also shift demand to the left.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.6 Microeconomics: Zeroing in on Businesses and Consumers_
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