Which of the following caused the change in demand from D...
The figure above shows change in demand for commodity X which is a normal good. Use it to answer the questions that follows
Which of the following caused the change in demand from D0 D0 to D2 D2?
Fall in income of consumer
Rise in the price of a substitute
Rise in the price of a complement
Fall in the supply of commodity X
Correct answer is B
A change in the demand from D0 D0 to D2 D2 is caused by the rise in the price of substitute, for example, if the price of milo increases, consumer will buy more of bournvita which will make the demand for bournvita to increase.
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