If product Y is an inferior good, a decrease in consumer incomes will
A. shift the demand curve for product Y to the left.
B. make buyers want to buy less of product Y.
C. shift the demand curve for product Y to the right.
D. not affect the sales of product Y.
Answer: C
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The ratio of the burden of the tax borne by demanders to the burden of the tax borne by suppliers will be equal to_____
a. the square of the slope of the demand curve b. the elasticity of demand times the elasticity of supply c. the ratio of the absolute values of the slopes of the demand curve and the supply curve d. the sum of the elasticities of the inverse demand curve and the supply curve
Which of the following actions would cause the aggregate demand curve to shift to the left?
A) an increase in consumer spending caused by a cut in the personal income tax rate B) an increase in government spending caused by increased spending on highways and bridge construction C) a decrease net export spending caused by an appreciation of the home currency D) an increase in exports caused by an increase in economic activity in the European Union