JAMB - Economics (2015 - No. 40)

Which of the following will shift the demand curve for Bournvita to the right
a rise in price of Bournvita
an increase in income
a tax on cocoa producer
a fall in price of Bournvita

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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