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Glossary
Knowledge Check - Scenario 4

For the following milk market scenario, identify the type and cause of change.


Scenario 4: The economy sinks into a recession, causing incomes of many Americans to decrease (assume milk is a normal good).

1. Based on Scenario 4, the demand curve for milk

shifts to the right.

shifts to the left.

does not shift.

 
Scenario 4: The economy sinks into a recession, causing incomes of many Americans to decrease (assume milk is a normal good).
 
2. Based on Scenario 4, which factor caused the change in demand for milk?

A change in consumer expectations

A change in consumer tastes or preferences

A change in the number of consumers in the market

A change in consumer income

A change in the price of a substitute good

A change in the price of a complementary good

A change in the price of milk