Increase in Demand for Desk Lamps
Factors Affecting Demand for Desk Lamps:
1. Income: One of the key factors that can lead to an increase in demand for desk lamps is a rise in income. If desk lamps are considered normal goods, an increase in income will likely result in a higher demand for desk lamps. This is because people tend to purchase more normal goods when their income rises.
2. Price of Substitute Goods: If floor lamps are considered substitute goods for desk lamps and the price of floor lamps increases, consumers may switch to purchasing desk lamps instead. This shift in consumer behavior can lead to an increase in demand for desk lamps.
3. Price of Complementary Goods: If desks are considered complementary goods for desk lamps, a decrease in the price of desks can lead to an increased demand for desk lamps. Consumers often purchase both desks and desk lamps together, so a decrease in the price of desks may result in a higher demand for desk lamps.
By understanding these key factors affecting demand for desk lamps, businesses can adjust their marketing strategies and pricing strategies to capitalize on these opportunities for increased demand.
A. If income increases and desk lamps are normal goods.B. If floor lamps are substitute goods for desk lamps, the price of floor lamps increases.
D. If desks are a complementary good for desk lamps, the price of desks decreases.
Explanation:
A normal good is a good whose demand increases when income increases and falls when income falls. When income increases, the demand for desk lamps would increase if they are normal goods.
A substitute good is a good that can be used in place of another good. If floor lamps are a substitute for desk lamps and the price of floor lamps increases, consumers would reduce their demand for floor lamps and increases their demand for desk lamps.
Complementary goods are goods that are used together. If desks and desk lamps are complementary goods, a decrease in the price of desk would lead to an increase in the demand for desk lamps.
Therefore, the demand for desk lamps can increase if income rises and they are normal goods, if substitute goods like floor lamps become more expensive, or if complementary goods like desks decrease in price.