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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
Under which circumstance would the demand curve for a normal good shift to the right?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
A demand curve for a normal good shifts outward (to the right) when the price of a substitute product decreases, making the substitute more attractive and increasing demand for the normal good. Changes in the product's own price or income affect quantity demanded but do not shift the demand curve outward in this context.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?