Exhibit 5-4 -Refer to Exhibit 5-4. A movement from D₁ to D₂ could occur if: A)there is a decrease in the income of consumers and submarine sandwiches are inferior goods. B)there is an increase in the income of consumers and submarine sandwiches are inferior goods. C)the wages of submarine sandwich makers decrease D)the price of bread, used to make submarine sandwiches, increases

Question

Quizplus · Accepted Answer

Moving from D₁ to D₂ implies an increase in income. If submarine sandwiches are inferior goods, an increase in income would lead to a decrease in demand for them. Therefore, option B is the correct choice. The other options do not reflect a change in income or a change in the price of the product.

Exhibit 5-4 ​

Exhibit 5-4