Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 3: Problem 4

Which of the following will cause a movement along the demand curve for good \(X\) ? a. A change in the price of a close substitute b. A change in the price of good \(X\) c. A change in consumer tastes and preferences for good \(X\) d. A change in consumer income

Short Answer

Expert verified
b. A change in the price of good \(X\) will cause a movement along the demand curve for good \(X\), as it directly affects the quantity demanded for that good due to the price effect.

Step by step solution

01

Option A: A Change in the Price of a Close Substitute

A change in the price of a close substitute affects the demand for good \(X\) through substitution effect. If a close substitute becomes more expensive or cheaper, some consumers may choose to buy more or less of good \(X\). However, this change affects the overall demand for good \(X\) and causes a shift in the demand curve, not a movement along the curve.
02

Option B: A Change in the Price of Good \(X\)

A change in the price of good \(X\) directly affects the quantity demanded for that good. As the price of good \(X\) increases or decreases, consumers tend to buy more or less of this good. This change results in a movement along the demand curve for good \(X\), which is caused by the price effect.
03

Option C: A Change in Consumer Tastes and Preferences for Good \(X\)

When consumer tastes and preferences change, the overall demand for good \(X\) may increase or decrease depending on whether consumers' preference for the good has increased or decreased. This change results in a shift in the demand curve for good \(X\), as it is not related to the price of the good itself.
04

Option D: A Change in Consumer Income

When consumer income changes, their overall purchasing power is affected, which influences the demand for various goods and services. A change in consumer income causes a shift in the demand curve for good \(X\) based on the good's nature as a normal or inferior good. This change does not lead to a movement along the demand curve, as it is not directly connected to the price of good \(X\). From the provided options, the correct answer is: b. A change in the price of good \(X\)

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

An improvement in technology causes a (an) a. leftward shift of the supply curve. b. upward movement along the supply curve. c. firm to supply a larger quantity at any given price. d. downward movement along the supply curve.

Assuming coffee and tea are substitutes, a decrease in the price of coffee, other things being equal, results in a (an) a. downward movement along the demand curve for tea. b. leftward shift in the demand curve for tea. c. upward movement along the demand curve for tea. d. rightward shift in the demand curve for tea.

Suppose autoworkers receive a substantial wage increase. Other things being equal, the price of autos will rise because of a (an) a. increase in the demand for autos. b. rightward shift of the supply curve for autos. c. leftward shift of the supply curve for autos. d. reduction in the demand for autos.

If the demand curve for good \(X\) is downward sloping, an increase in the price will result in a. an increase in the demand for good \(X\) b. a decrease in the demand for good \(X\) c. no change in the quantity demanded for good \(X\) d. a larger quantity demanded for good \(X\) e. a smaller quantity demanded for good \(X\).

If \(Q_{\mathrm{d}}=\) quantity demanded and \(Q_{\mathrm{s}}=\) quantity supplied at a given price, a shortage in the market results when a. \(Q_{s}\) is greater than \(Q_{d}\) b. \(Q_{s}\) equals \(Q_{d}\) c. \(Q_{d}\) is less than or equal to \(Q_{s}\) d. \(Q_{d}\) is greater than \(Q_{s^{*}}\)
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free