If you produce a normal good and consumers' incomes are expected to decrease, you should anticipate a________ price for your product than the current equilibrium price and a ________equilibrium quantity than the current equilibrium quantity.

Question

Quizplus · Accepted Answer

If consumers' incomes decrease, their demand for normal goods will also decrease. This will cause a leftward shift in the demand curve, leading to a lower equilibrium price and a lower equilibrium quantity. Therefore, the correct choice is D.

If You Produce a Normal Good and Consumers' Incomes Are