Which scenario would typically lead to an increase in demand for a good?

Study for the IGCSE Economics Test. Dive into multiple choice questions and informative flashcards, each with hints and clear explanations. Boost your exam readiness!

An increase in population generally leads to an increase in demand for goods because a larger population means more potential consumers in the market. As the number of consumers rises, the overall consumption of goods and services tends to increase, assuming other factors remain constant. This increased demand can be for essential goods, such as food and housing, as well as for non-essential items, as more people typically leads to greater overall spending in the economy.

In contrast, a decrease in consumer income often results in lower demand for goods, particularly for normal goods, as consumers have less money to spend. A decrease in the price of a substitute good can shift consumer preferences toward the now cheaper substitute, decreasing demand for the original good. Lastly, an increase in the price of complementary goods typically leads to a decrease in demand for the associated good, as it becomes more expensive to enjoy the complementary products together. Therefore, an increase in population is a clear scenario that would lead to heightened demand for a good.

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