Suppose a decrease in income causes the market demand curve for potatoes to shift to the right. We can conclude that:

Question

Quizplus · Accepted Answer

When a decrease in income causes the market demand curve for a product to shift to the right, it suggests that the product is an inferior good. This is because as consumers have less disposable income, they are substituting higher-priced goods for cheaper alternatives, such as potatoes.

Suppose a Decrease in Income Causes the Market Demand Curve