Which of the following situations would cause your demand curve to shift to the LEFT?

Question

BlackTom AI · Accepted Answer

To determine which situation causes a demand curve to shift to the left, we need to consider how non-price factors affect overall demand.
Option 1: 'consumers lose interest in your brand' — A drop in consumer interest reduces overall demand for your brand at every price, causing the entire demand curve to shift left. This is a classic negative demand factor.
Option 2: 'your main competitor is having quality problems' — If a competitor’s quality worsens, some consumers may switch to your brand, increasing your demand. This would shift the demand curve to the right, not left.
Option 3: 'competitors raise their prices' — When substitutes become more expensive, consumers may buy more of your product, which tends to increase demand for your brand, shifting the curve to the right. It does not cause a leftward shift.
Option 4: 'consumer incomes increase' — For a normal good, higher incomes raise demand, shifting the curve right. This is not a leftward shift (and for inferior goods it could do the opposite, but the statement does not specify that context).
Option 5: 'Consumer Reports gives your brand a positive review' — Positive reviews typically boost demand, shifting the curve to the right, not left.
Thus, among the options, only the first scenario reduces overall demand and causes a leftward shift in the demand curve.

Which of the following situations would cause your demand curve to shift to the LEFT?

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