Assume that the market for baseballs is in equilibrium.There is a sudden decrease in income throughout the economy.If all else is held constant,we would expect that if baseballs are a(n)________ good,then the demand curve will shift to the ________,causing the equilibrium price and quantity to ________.

Question

Quizplus · Accepted Answer

If baseballs are considered a normal good, a decrease in income would lead to a decrease in demand for baseballs. This is represented by a leftward shift of the demand curve. As a result, both the equilibrium price and quantity of baseballs would fall.

Assume That the Market for Baseballs Is in Equilibrium