Which of the following would shift the demand curve for tea to the right?
Answer and explanation
Correct answer: C. A rise in consumers' incomes
- Step 1: A rise in income increases demand for a normal good at every price. Answer: A rise in consumers' incomes. Why not the others: A fall in the price of tea: That causes a movement along the same demand curve. A rise in the price of tea: That causes a movement along the curve. A fall in the cost of tea picking: That shifts the supply curve.
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