Homework Help: Economics

Posted by Ed on Friday, May 27, 2011 at 12:24pm.

which of the following factors will not lead to a decrease in demand for a good?

A) an increase in the price
B) a decrease in the price of substitute products
C) An unsuccessful advertising campaign for the good
C) a decrease in the consumer incomes

I think it is B, but the book says A. Could some please help me.

Economics - SraJMcGin, Friday, May 27, 2011 at 1:08pm
Make absolutely SURE you have copied the question correctly. It is trickier if it is negative. In my opinion:

A. WILL lead to a decrease in demand
B. This will too because people will buy the less expensive product
C. As far as I'm concerned, it is C. Many people ignore the advertising, although if they see a bad ad, they will probably want the product less.
The 2nd C must be D? If the consumers have less money, there will be less demand.

But the question does say "what WILL lead to a decrease" BUT "what will NOT."

Sra

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