When income decreases, all else held constant, which of the following occurs?
A)Demand for an inferior good decreases.
B)The slope of the highest attainable indifference curve changes.
C)The budget line shifts out from the origin.
D)Total utility decreases.
E)Total utility increases.

Question

Quizplus · Accepted Answer

When income decreases, consumers have less money to spend, which typically leads to a decrease in total utility because they can afford fewer goods and services.

When Income Decreases, All Else Held Constant, Which of the Following