A demand function shifts to the right when there is an increase in demand for a product. Let’s consider the scenarios presented:
- a) An increase in the price of a substitute: This situation can lead to a rightward shift in the demand function. When the price of a substitute good rises, consumers are likely to turn to the cheaper alternative, increasing the demand for the product in question.
- b) An increase in the product’s own price: Generally, an increase in the price of a product does not increase its demand; instead, it may decrease it or keep it stable as customers look for cheaper options. Therefore, this does not cause a rightward shift in the demand curve.
- c) An increase in the price of a complement: A complement is a good that is consumed together with another good. If the price of a complement rises, it can decrease the demand for both the complement and the original product, leading to a leftward shift in the demand function.
- d) A decrease in the price of a substitute: When the price of a substitute decreases, consumers may choose the substitute over the original good, which would likely cause a leftward shift in the demand function for the original product.
In summary, the correct factor that would lead to a demand function shifting to the right is (a) an increase in the price of a substitute. This is because it results in consumers seeking alternatives, thereby increasing the demand for the product in question.