Question

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.

Answer 1

Shift in Demand Curve occurs when the demand at each price increases or decreases.

If overall demand increases, the quantity demanded at each price will go up and the Demand Curve will shift to the right

.A.Vegetable prices rise as the majority of the population no longer eats meat.

Demand for vegetables will go up and for the same price quantity demanded will go up . People will be willing to pay higher price .

Demand Curve will shift to the right

.B. Auto sales increase due to increased employment.

Demand for automobiles will go up and for the same price quantity demanded will go up . People will be willing to pay higher price   for automobile

Demand Curve will shift to the right.

.C. Gasoline consumption decreases as the taxes included in the price of gasoline increase.

There is no shift in Demand Curve. As price increases, demand will decrease along the same Demand Curve.

ANSWER:

Both A and B.