Question

an article in the Wall Street Journal on the recreational vehi- cle (RV) industry listed several factors that led to a larger quantity of RVs sold: a. Increasing confidence among households that their future incomes would rise

Answer 1

Answer and Explanation:

When there is a movement in a demadn curve so it could be bought when the price vary so in the given case all four factors need to be required for shifting the demand curve

1. As if the confidence is increased so the demand increased that shift the demand curve to the right

2. Now if the credit is cheaper so the RV could be purchased in an easiest way due to which demand increased that shift the demand curve to the right

3. Gasoline i.e. fuel is a complementary good for RV if the gasoline is fallen so it would be more affordable due to which the demand increased hat shift the demand curve to the right

4, Due to the Consumer preference the  demand increased that shift the demand curve to the right