Question

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.

Answer 1

Answer:

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.