Answer to Question #237435 in Economics for CCW

Question

Demand Worksheet: Vocabulary

4) Word - Decrease in people’s income

• indicate whether demand will increase or decrease
• provide an explanation as to why

Answer 1

With a decrease in the level of income of the population around the world, there will be a decrease in demand. In addition, the new demand will be characterized not only by a quantitative change but also by structural changes towards a decrease in the consumption of high-quality goods and an increase in the consumption of low-quality goods.