Question

Which of the following would NOT shift the demand curve for coffee? The price of doughnuts (a complement to coffee) decreases. The adult population increases so there are more buyers in the market for coffee. O Consumer income increases. O The price of coffee increases.

Answer 1

There are two things

1) Movement along the demand curve

When demand change due to change in its own price then there is a movement along the demand curve.

2) Shift in the demand curve

When demand change due to the change in factors other than price of own good then there is a shift in the demand curve.

Factors like

Change in the price of substitute goods

Change in the price of complementary goods

Change in the income of the consumer

Change in population

Change in taste and preferences

Now coming to the question

From the four options if the price of coffee increases then it will result in movement along the demand curve. Hence it will not shift the demand curve for coffee.

Option D is correct