Question

Which of the following factors will lead to a leftward shift in the demand curve?

Options

• Increase in income in case of inferior goods

• Increase in income in case of normal goods

• Increase in Population

• Expectation of future increase in price

Answer 1

Increase in income in case of inferior goods

Explanation:

Higher income reduces demand for an inferior good, shifting its curve leftward. Higher income for normal goods, population growth and expected future price rises tend to increase demand.