Which of the following will shift the demand curve for Bournvita to the right
ECONOMICS
JAMB 2015
Which of the following will shift the demand curve for Bournvita to the right
- A. a rise in price of Bournvita
- B. an increase in income
- C. a tax on cocoa producer
- D. a fall in price of Bournvita
Correct Answer: B. an increase in income
Explanation
A shift in demand means that at any price (and at every price), the quantity demanded will be different than it was before. It caused by a change in the number of consumers, a change in the distribution of tastes among consumers, a change in the distribution of income among consumers with different tastes. Price does not affect the shift of a demand curve. From the given options, B correctly fits into this narrative.
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