Exhibit 3-9
Refer to Exhibit 3-9. A severe recession has sharply decreased the incomes of consumers. Knowing that X is a normal good, you expect a movement in the market for X from
A)A to B.
B)E to F.
C)F to E.
D)B to A.

Question

Exhibit 3-9 
Refer to Exhibit 3-9. A severe recession has sharply decreased the incomes of consumers. Knowing that X is a normal good, you expect a movement in the market for X from
A)A to B. 
B)E to F. 
C)F to E. 
D)B to A.

Quizplus · Accepted Answer

A severe recession causing a decrease in incomes of consumers would lead to a decrease in demand for normal goods. Therefore, we can expect a movement from point B to A, as the demand for X would decrease and the quantity demanded would decrease as well.

Exhibit 3-9 Refer to Exhibit 3-9. a Severe Recession Has Sharply Decreased