Refer to the information provided in Figure 23.2 below to answer the question(s) that follow. Figure 23.2
-Refer to Figure 23.2. A decrease in Jerry's income is represented by
A) an upward shift in Jerry's consumption function.
B) a decrease in the slope of Jerry's consumption function.
C) a movement from Point B to A.
D) a movement from Point C to A.

Question

Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.  Figure 23.2
-Refer to Figure 23.2. A decrease in Jerry's income is represented by
A) an upward shift in Jerry's consumption function. 
B) a decrease in the slope of Jerry's consumption function. 
C) a movement from Point B to A. 
D) a movement from Point C to A.

Quizplus · Accepted Answer

A decrease in Jerry's income would result in a decrease in his consumption levels, shifting the consumption function downwards. This is represented by a movement from Point C to A on the graph. Therefore, the correct choice is D.

Refer to the Information Provided in Figure 23