Use the following to answer question(s): Demand and Supply-Determinants

-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes decrease.Which panel best describes how this will affect the market for used clothing, an inferior good?

Question

Use the following to answer question(s): Demand and Supply-Determinants
 
-(Exhibit: Demand and Supply-Determinants) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes decrease.Which panel best describes how this will affect the market for used clothing, an inferior good?

Quizplus · Accepted Answer

When consumer incomes decrease, the demand for inferior goods like used clothing typically increases, as people look for more affordable options. Panel (a) would show an increase in demand, shifting the demand curve to the right.

Use the Following to Answer Question(s): Demand and Supply-Determinants