When there is an inferior good
,
a decrease
in consumer income will result in the
A.demand curve shifting to the right.
demand curve shifting to the right.
B.
supply curve shifting to the right.
C.demand curve shifting to the left.
demand curve shifting to the left.
D.
supply curve shifting to the left.
C. demand curve shifting to the left.
The correct answer is C) demand curve shifting to the left.
When there is an inferior good, it means that as consumer income increases, the demand for this good decreases because consumers switch to higher-quality alternatives. Conversely, as consumer income decreases, the demand for the inferior good increases.
Therefore, when there is a decrease in consumer income, it will result in a leftward shift of the demand curve for an inferior good. This shift represents a decrease in the quantity demanded at each price, indicating that consumers are purchasing fewer units of the inferior good.
When there is an inferior good, a decrease in consumer income will result in the demand curve shifting to the left (option C).
To understand why, it's important to know what an inferior good is. An inferior good is a type of good for which demand decreases as consumer income increases. In simpler terms, it is a good that people buy less of when they have more money.
Now, let's break down the scenario. When consumer income decreases, people have less money to spend on goods and services. Since an inferior good is one that people buy less of as their income decreases, the demand for that good will also decrease.
When the demand for a good decreases, the demand curve shifts to the left. This means that consumers are willing and able to buy less of the good at any given price level. Therefore, in this scenario, a decrease in consumer income will result in the demand curve shifting to the left (option C) for an inferior good.