Question

1. which of the following is most likely to cause the demand curve for itunes music downloads to shift to the right?○ an increase in the price of itunes music downloads.○ a decrease in the price of itunes music downloads.○ a decrease in the price of ipods.○ a decrease in consumer income.

Explanation:

A rightward shift of a demand curve means an increase in demand at every price level.

• A change in the price of the good itself (iTunes downloads) causes a movement along the demand curve, not a shift, so the first two options are incorrect.
• A decrease in consumer income would decrease demand (shift left) for normal goods like iTunes downloads.
• iPods and iTunes music downloads are complementary goods. A decrease in the price of iPods makes them more affordable, increasing the demand for iTunes music downloads (shifting its demand curve right).

Answer:

B. a decrease in the price of Ipods.