In: Economics
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 choices
an expectation by buyers that their incomes will increase in the very near future
a decrease in the price of tennis racquets
an increase in the price of tennis balls
a decrease in the number of people in the United States under age 70
Answer: an expectation by buyers that their incomes will increase in the very near future.
Demand curve shifts if any factor other than price changes. A change in price factor causes a movement along the demand curve. If buyers expect an increase in income in the future, they would increase the demand for the product in the current period. Hence, demand curve shifts to the right.