Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

3. The Market Forces of Supply and Demand

Shifts in the Demand Curve

Microeconomics

3. The Market Forces of Supply and Demand

Shifts in the Demand Curve

Previous problem

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Multiple Choice

If cheese in a can is an inferior good, what happens to its market when consumer income increases?

Demand shifts to the left

Demand shifts to the right

Supply shifts to the left

Supply shifts to the right

Previous problem

Verified step by step guidance

Understand the concept of an inferior good: An inferior good is one for which demand decreases as consumer income increases, contrary to normal goods where demand increases with higher income.

Identify the relationship between consumer income and demand for inferior goods: As consumer income rises, consumers tend to buy less of inferior goods, opting for higher-quality alternatives.

Analyze the impact on the demand curve: Since cheese in a can is an inferior good, an increase in consumer income will lead to a decrease in demand for this product.

Determine the direction of the demand shift: A decrease in demand due to higher income will cause the demand curve to shift to the left.

Conclude the effect on the market: With the demand curve shifting to the left, there will be a lower quantity demanded at each price level, potentially leading to a decrease in market price and quantity sold.