Asked by Janice Walker on Jul 27, 2024
Verified
Which of the following is most likely to cause the demand for ice cream,a normal good,to decrease?
A) A decrease in the price of ice cream
B) A decrease in the price of milk
C) A warmer weather
D) An increase in the number of consumers
E) A decrease in consumer income
Normal Good
A normal good is a type of good for which demand increases when income increases, and decreases when income decreases, showing a direct relationship between income and demand.
Consumer Income
The total income received by consumers, including wages, salaries, benefits, and income from investments, which can be spent or saved.
Ice Cream
A frozen dessert made from dairy products, such as milk and cream, combined with flavors and sweeteners, often consumed as a treat or snack.
- Determine the causes behind movements along and shifts in demand curves.
- Analyze how changes in preferences, incomes, and prices of related goods affect demand.
Verified Answer
VD
vishav dhillonJul 29, 2024
Final Answer :
E
Explanation :
If consumer income decreases, they will have less disposable income to spend on luxury items like ice cream, leading to a decrease in demand.
Learning Objectives
- Determine the causes behind movements along and shifts in demand curves.
- Analyze how changes in preferences, incomes, and prices of related goods affect demand.