Answer to Question #24582 in Microeconomics for saad

Question

Due to what we know about silk shirts and the reasons people buy them, if incomes decrease in the United States the expected effect on the market for silk shirts will be:


A. P* up, Q* down


B. P* up, Q* up


C. P* down, Q* down


D. P* down, Q* up


E. A movement to the left along the demand curve

Answer 1

E. A movement to the left along the demand curve People will buy less shirts and it is not price impact, so we will shift along the demand curve