Question

    Which of the following is not a cause of rightward shift of demand curve?

    A Favourable change in tastes Correct Answer Incorrect Answer
    B Increase in the price of a substitute good Correct Answer Incorrect Answer
    C Decrease in the price of a complementary good Correct Answer Incorrect Answer
    D Increase in income of the consumer for inferior good Correct Answer Incorrect Answer

    Solution

    Increase in income of the consumer for inferior good decreases demand for that good as the consumer now buys better quality products.

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