In a Recession,consumers Have Less Income to Spend

question 61

Multiple Choice

In a recession,consumers have less income to spend.As a result,if dining out is a normal good,then which of the following would happen to the demand curve for dining out?

• A) The demand curve would shift leftward.
• B) The demand curve would not shift but the price of dining out would rise.
• C) The effect on the demand curve is unknown.
• D) The demand curve would shift rightward.
• E) The demand curve would not shift but the price of dining out would fall.

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Definitions:

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