The discussion of Figure 2.2 in the text indicates that quantity demanded for most goods tends to increase as income rises. However, the quantity of bananas demanded in the U.S. tends to decrease as income rises. Under this condition, we expect that an increase in consumer income shifts the demand curve for bananas:
A) rightward
B) no shift.
C) leftward.
D) upward.

Question

Quizplus · Accepted Answer

The fact that the quantity of bananas demanded in the U.S. tends to decrease as income rises indicates an inverse relationship between income and demand for bananas. Therefore, an increase in consumer income would lead to a decrease in demand for bananas and shift the demand curve leftward.

The Discussion of Figure 2