Which one of the following will NOT cause the change in demand or demand curve to shift?

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BlackTom AI · Accepted Answer

Question restatement: Which one of the following will NOT cause the change in demand or demand curve to shift?

Option 1: trends or preferences. Changes in consumer tastes or preferences are classic non-price determinants that shift the demand curve to the right or left. If people suddenly prefer a good more, demand increases and the entire curve shifts; if they care less, demand decreases and the curve shifts in the opposite direction.

Option 2: price of substitutes. The price of a substitute affects demand for the good in question. If the substitute becomes more expensive, consumers switch to the other good, increasing its demand and shifting the demand curve. Conversely, a cheaper substitute reduces demand for the good in question, shifting the curve in the opposite direction.

Option 3: price of the good itself. The price of the good itself causes a movement along the demand curve (a change in quantity demanded) rather than a shift of the demand curve. All other things equal, when price changes, you move up or down the same demand curve instead of shifting it left or right.

Option 4: weather. Weather conditions can influence demand for certain goods (e.g., coats in winter or ice cream in a heatwave). Such changes in real-world conditions act as non-price determinants and shift the demand curve as consumer needs change with weather patterns.

Key takeaway: Shifts in the demand curve are driven by non-price factors like preferences, substitutes’ prices, weather, income, etc. A change in the good’s own price changes quantity demanded along the same curve, not the position of the curve itself.

Explanation of incorrect options in brief:
- Option 1 misreads the effect of preferences, which actually reroutes demand by shifting the curve. 
- Option 2 misinterprets substitutes’ price as altering the overall demand level, which it does via a shift, not merely a movement along the curve. 
- Option 4 correctly identifies a non-price determinant that shifts demand.

In summary, the factor that does not cause a shift in the demand curve but instead causes movement along it is the price of the good itself, aligning with the distinction between a change in quantity demanded and a change in demand.

Which one of the following will NOT cause the change in demand or demand curve to shift?

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