Refer to the information provided in Figure 3.7 below to answer the following questions. Figure 3.7
-Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D2 to

Question

Refer to the information provided in Figure 3.7 below to answer the following questions.  Figure 3.7
-Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D2 to

Quizplus · Accepted Answer

When income decreases, the demand for normal goods decreases. Therefore, the market will shift from demand curve D2 to demand curve D1, causing the equilibrium point to move from Point B to Point A.

Refer to the Information Provided in Figure 3