You decide to cash out your CD early. What will happen? A. You will be able to invest in other stocks. B. You will be penalized
2 answers:
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Answer:
C. leftward shift of the demand curve.
Explanation:
A normal good is a good whose demand increases when income increases and falls when income falls.
The demand curve is represented as downward sloping curve. It slopes downward because the higher the price, the lower the quantity demanded and the lower the price, the higher the quanirty demanded.
A fall in demand is represented by a leftward shift of the demand curve. A rise in demand is represented by a rightward shift of the demand curve.
Factors that leads to a leftward shift of the demand curve:
1. Decrease in income
2. Change in taste - if consumers prefer other products
3. Season
4. Fall in price of substitutes
I hope my answer helps you
