The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1

-A fall in the average income of a consumer, say during a recession, is represented by:
A)an upward movement along the demand curve for a good consumed by the consumer.
B)a downward movement along the demand curve for a good consumed by the consumer.
C)a shift of the demand curve for a good consumed by the consumer.
D)a rotation of the demand curve for a good consumed by the consumer.
E)an inward shift of the demand curve for an inferior good consumed by the consumer.

Question

The figure given below shows the demand curves for five products: A, B, C, D, and E.Figure 6.1
 
-A fall in the average income of a consumer, say during a recession, is represented by:
A)an upward movement along the demand curve for a good consumed by the consumer. 
B)a downward movement along the demand curve for a good consumed by the consumer. 
C)a shift of the demand curve for a good consumed by the consumer. 
D)a rotation of the demand curve for a good consumed by the consumer. 
E)an inward shift of the demand curve for an inferior good consumed by the consumer.

Quizplus · Accepted Answer

A fall in the average income of a consumer typically causes a shift of the demand curve for a good, as it affects the consumer's ability to purchase goods at all price levels, rather than just changing the quantity demanded at a specific price.

The Figure Given Below Shows the Demand Curves for Five