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dedylja [7]
3 years ago
14

Can somebody please explain this to me it was assigned & i was absent that day i don’t get what i’m suppose to do :(

History
1 answer:
Tems11 [23]3 years ago
4 0

Answer:

How will this headline impact demand? ⇒ Demand will FALL.

The goods demanded by people depends on the amount of money they have and receive. If this money reduces as is the case here(with income declining), people will no longer be able to afford the same things they used to.

Income declining for workers means that they will demand less movie tickets because they cannot afford it.

Which shifter of demand is at work in this example? ⇒ INCOME.

Income is one of the determinants of demand and in this case will be the reason the demand curve shifts to the left to signify a fall in demand. As explained above, with people having less wages (income), they will only be able to afford less movie tickets which will reduce the demand for movie tickets.

Adding a new Demand curve.

To signify that demand has fallen, your new demand curve should be to the left of the current one.

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