A decrease in income will cause which of the following to happen to the demand for used cars. a. an increase in the demand for used cars. b. a decrease in the demand for used carsc. an increase in the quantity demanded for used cars. d. a decrease in the demand for used cars.

Question

Lawson

Business

20 April, 01:45

A decrease in income will cause which of the following to happen to the demand for used cars. a. an increase in the demand for used cars. b. a decrease in the demand for used carsc. an increase in the quantity demanded for used cars. d. a decrease in the demand for used cars.

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Lincoln · Answer 1

A

Explanation:

Only changes in price will traduce in movements along the demand curve, in this case a decrease in income will cause a shift. Because used cars are considered inferior goods (demand for this goods is reduced when income increases) a decrease in income will increase their demand and cause a shift to the right of the demand curve.