Which of the following will shift the demand curve for Bournvita to the right

Step 1: Analyze the question The question asks what will shift the demand curve for Bournvita to the right, meaning an increase in demand at every price level.

Step 2: Explain the concept Economics distinguishes between two things:

• Change in quantity demanded: caused only by a change in the good's own price. This is a movement along the same demand curve (extension or contraction).
• Change in demand: caused by other factors, the "determinants of demand". This is a shift of the whole curve.

Determinants of demand include:

• Consumers' income (for normal goods)
• Prices of related goods (substitutes and complements)
• Tastes and preferences
• Population size
• Expectations about future prices

An increase in demand shifts the curve to the right. A decrease shifts it to the left.

Step 3: Evaluate each option

• A. A rise in the price of Bournvita: This causes a contraction in quantity demanded, a movement up along the same curve. There is no shift.
• B. An increase in income: Bournvita is a normal good. When consumers earn more, they can afford more of it at every price, so the demand curve shifts to the right. ✔
• C. A tax on cocoa producers: This affects the cost of production, so it shifts the supply curve to the left (if anything). It does not directly shift demand.
• D. A fall in the price of Bournvita: This causes an extension in quantity demanded, a movement down along the same curve. There is no shift.

Step 4: Answer The correct option is B. an increase in income.

Exam tip: Ask yourself, "Is the change in the good's own price?" If yes, it is only a movement along the curve. If the cause is something else, such as income, tastes, or the prices of other goods, it is a shift. Remember: own price = movement, other factors = shift.