Question

which four of the following would shift a demand curve to the right?

a fall in the price of substitutes
increasing the selling price
decreasing the selling price
more advertising
a reduction in the price of complements
a rise in the price of substitutes
a rise in income
an increase in the price of complements

Explanation:

Analyze the question prompt

The question asks which of the listed options would shift a demand curve to the right (representing an increase in demand).

Evaluate price changes of the good itself

• "Increasing the selling price" and "Decreasing the selling price" cause movements along the demand curve (change in quantity demanded), not shifts of the curve itself.

Evaluate non-price determinants of demand

• More advertising: Increases consumer preferences, shifting demand to the right.
• A reduction in the price of complements: Increases demand for the primary good, shifting demand to the right.
• A rise in the price of substitutes: Consumers switch from the substitute to this good, shifting demand to the right.
• A rise in income: For normal goods, an increase in income shifts demand to the right.
• A fall in the price of substitutes and An increase in the price of complements shift demand to the left.

Answer:

• A fall in the price of substitutes
• Increasing the selling price
• Decreasing the selling price
• More advertising (Correct answer)
• A reduction in the price of complements (Correct answer)
• A rise in the price of substitutes (Correct answer)
• A rise in income (Correct answer)
• An increase in the price of complements