Offsetting Demand Shifters for Normal Goods

Steps:

• Identify demand shifters: income and substitute prices affect position; own price causes movement along curve.
• For normal good, income decrease shifts demand left; substitute price increase shifts it right.
• Compare each option's net effect on curve position.
• Select option with opposing shifts that balance out.

Why A is correct:

• Income decrease reduces demand (left shift, per normal good definition), but substitute price increase raises demand for this good (right shift via cross-price elasticity), offsetting to leave curve unchanged.

Why the others are wrong:

• B: Both income increase and substitute price increase cause right shifts, moving curve right.
• C: Income increase shifts right; own price increase causes upward movement along curve, net right shift.
• D: Income decrease shifts left; own price increase causes upward movement along curve, net left shift.

Final answer: A