The figure below shows the change in demand for Commodity X which is a normal good. Use it to answer the question that follows. Which of the following cause...

The figure below shows the change in demand for Commodity X which is a normal good. Use it to answer the question that follows.

Which of the following caused the change in demand from D\(_{1}\) D\(_{1}\) to D\(_{2}\)D\(_{2}\)

Answer Details

The change in demand from D\(_{1}\)D\(_{1}\) to D\(_{2}\)D\(_{2}\) is caused by a rise in the price of a substitute for commodity X. When the price of a substitute for commodity X increases, consumers tend to switch to commodity X, resulting in an increase in demand for commodity X. Therefore, the demand curve for commodity X shifts to the right from D\(_{1}\)D\(_{1}\) to D\(_{2}\)D\(_{2}\). It is important to note that since commodity X is a normal good, a fall in the income of consumers would cause a leftward shift of the demand curve, not a rightward shift. A rise in the price of a complement or a fall in the supply of commodity X would result in a leftward shift of the demand curve for commodity X.