A decrease in consumer income decreases the demand for compact discs. As a result of the change to a new equilibrium, there is a(n):

Question

Quizplus · Accepted Answer

A decrease in consumer income decreases the demand for compact discs, which leads to a decrease in the quantity demanded at each price point. This results in a leftward shift of the demand curve. This change in demand leads to a new equilibrium point where the quantity demanded is lower and the price is lower as well. This is represented by a movement down along the supply curve from the old equilibrium point to the new one. Therefore, the correct answer is a downward movement along the supply curve.

A Decrease in Consumer Income Decreases the Demand for Compact