What is a "Which Of The Following Best Explains What Happens When Consumers Think The Economy Is Struggling"? The Most Authoritative Explanation.

What is a "Which Of The Following Best Explains What Happens When Consumers Think The Economy Is Struggling"? The Most Authoritative Explanation.

What happens when consumers think the economy is struggling?

Which of the following best explains what happens when consumers think the economy is struggling? 1.People spend more, businesses produce less, and unemployment rises. 2.People spend more, businesses produce a lot, and unemployment is low. 3.People spend less, businesses produce too much, and unemployment is low.

How does the price of gasoline affect the demand curve?

By raising prices and increasing supply. If the cost of gasoline increases sharply and continues to rise, how does this development affect the demand curve for cars? The demand curve for gas-guzzlers shifts to the left, and the demand curve for fuel-efficient cars shifts to the right.

What causes a change in demand?

A change in any one of the underlying factors that determine what quantity people are willing to buy at a given price will cause a shift in demand. Graphically, the new demand curve lies either to the right (an increase) or to the left (a decrease) of the original demand curve. Let’s look at these factors.

How does income affect a product's demand?

A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve for an inferior good shifts to the left. Income is not the only factor that causes a shift in demand.

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