Which of the following would cause the demand curve of iPhones to increase (i.e. shift)? Assume...

Which of the following would cause the demand curve of iPhones to increase (i.e. shift)? Assume that iPhones are a normal good.

		A decrease in the cost of glass screens used to make smart phones
		An increase in Samsung Galaxy prices, where Samsung Galaxy is a substitute for iPhones.
		A decrease in the level of incomes for the average household
		An increase in the supply for iPhones

Expert Solution

An increase in Samsung Galaxy prices, where Samsung Galaxy is a substitute for iPhone

Change in the price of substitute goods is an important determinant of demand. Substitute goods are those goods which can be substituted for each other or can be used in place of each other. In case of such goods, increase in the price of one substitute causes an increase in the demand for the other substitute. So when price of Samsung Galaxy increases, demand for iPhone will increase because both the phones are substitute for each other.

Other option are incorrect because -

*A decrease in the cost of glass screens used to make smart phones will affect the supply because change in cost of production is a determinant of supply and hence demand won't get affected.

*A decrease in the income will decrease the demand of iPhone because iPhone is a normal good. Normal goods are those goods whose demand increase with an increase in income and vice versa.

*An increase in the supply of iPhone is a determinant of supply and hence won't affect demand for iPhone.

Rahul Sunny answered 2 years ago

Which of the following situations would cause a shift in the demand curve, as opposed to...

Which of the following situations would cause a shift in the demand curve, as opposed to a change in the quantity demanded? Vegetable prices rise as the majority of the population no longer eats meat. Auto sales increase due to increased employment. Gasoline consumption decreases as the taxes included in the price of gasoline increase. Both A and B.

Which of the following would cause a definite leftward shift of the supply curve? an increase...

Which of the following would cause a definite leftward shift of the supply curve? an increase in the cost of an input and an expectation by firms of a lower price an increase in the price of a complement in production and a decrease in the cost of an input an increase in taxes and an increase in the number of firms an increase in the price of a substitute in production and a decrease in productivity

1. which of the following would cause a definite leftward shift of the demand curve? a)...

1. which of the following would cause a definite leftward shift of the demand curve? a) an expectation by consumers of a lower price and an increase in the price of a compliments b) an expectation by consumers of lower income and an increase in the price of a substitute c) a decrease in the number of consumers and a decrease in income (assume inferior good) d) a decrease in income and a positive change in consumer tastes 2. When...

An increase in price will cause the money demand curve to shift to _____ and the...

An increase in price will cause the money demand curve to shift to _____ and the nominal interest rate to_______

Which of the following will cause the aggregate demand curve to shift to the right ?...

Which of the following will cause the aggregate demand curve to shift to the right ? a. A decrease in household wealth b. A decrease in the price level c. Consumer expectations of higher future income d. An increase in the interest rate Which of the following events would most likely caused the increase in aggregate demand a. An increase in interest rates b. An increase in household wealth c. A decrease in consumer confidence d. A decrease in the...

Which of the following will cause a rightward shift (increase) of the supply curve for OLED...

Which of the following will cause a rightward shift (increase) of the supply curve for OLED smart TVs? Answers: A. A decrease in the labor costs associated with the production of OLED smart TVs B. An improvement in the technology used to produce OLED smart TVs C. A decrease in the price of regular smart TVs D. All of the above

State which of the following changes cause a shift in the aggregate demand curve and which...

State which of the following changes cause a shift in the aggregate demand curve and which ones are a movement along it. Also provide the direction of the change. A cut in government purchases. A crash in the U.S. stock market. A shift to a lower inflation target in the monetary policy rule. Being thrifty now becoming fashionable. An increase in the European interest rate.

Determine whether each of the following would cause a shift of the aggregate demand curve, a...

Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? 1] The price level changes. 2] Consumer confidence increases. 3] The supply of resources decreases. 4] The wage rate decreases.

Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?

Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?Group of answer choicesan expectation by buyers that their incomes will increase in the very near futurea decrease in the price of tennis racquetsan increase in the price of tennis ballsa decrease in the number of people in the United States under age 70

Explain the changes that would cause the dynamic aggregate demand curve to shift.

Question