Figure 3-1

-Refer to Figure 3-1.If the product represented is a normal good, a decrease in income would be represented by a movement from
A)A to B.
B)B to A.
C)D₁ to D₂.
D)D₂ to D₁.

Question

Figure 3-1
 
-Refer to Figure 3-1.If the product represented is a normal good, a decrease in income would be represented by a movement from
A)A to B. 
B)B to A. 
C)D₁ to D₂. 
D)D₂ to D₁.

Quizplus · Accepted Answer

A decrease in income would shift the demand curve inward, resulting in a movement from D₂ to D₁. This is consistent with a normal good, as a decrease in income leads to a decrease in demand for this type of product.

Figure 3-1 -Refer to Figure 3-1.If the Product Represented Is a Normal