When might the demand curve for a normal good shift outward ?
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Answer: B. The price of a substitute falls
Explanation
An increase in the price of a substitute good encourages consumers to switch to the original normal good. Higher substitute prices raise the relative attractiveness of the normal good at every price level. Consumer substitution behavior shifts the demand curve for the normal good outward to the right. Substitute goods can be used in place of one another due to similar consumer utility functions. Normal goods experience increased demand when consumer incomes or substitute prices rise. Demand curve shifts represent changes in consumer preferences or market conditions other than price.
Retailers monitor substitute pricing strategies to anticipate shifts in consumer demand patterns. Market analysis requires understanding how cross-price elasticities affect product sales volumes. Economic forecasters track substitute goods to predict broader consumer market trends successfully. Option A results in a movement along the demand curve rather than an outward shift. Option B is incorrect because a falling substitute price shifts demand inward for the original good. Option D is wrong since falling consumer incomes typically shift demand inward for normal goods.
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