If the consumer's income level increases leading to a decrease in the demand for bread, _____.
A) the demand curve for bread will shift to the right
B) the equilibrium quantity of bread will increase
C) the equilibrium price of bread will decrease
D) the supply curve for bread will shift to the left

Question

Quizplus · Accepted Answer

When the demand for a good decreases due to an increase in consumer income (indicating that the good is an inferior good), the equilibrium price of that good is likely to decrease because the lower demand reduces the price consumers are willing to pay. The other options incorrectly describe the effects on the demand and supply curves and the equilibrium quantity in response to a decrease in demand.

If the Consumer's Income Level Increases Leading to a Decrease