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QuizMultiple Choice

American Life in the Great Depression — Unit test

Question 2 • AVAHS 26-27 CCPS SS US History Gr 11 (45.0810000) YL IC (Fall)

How will a decrease in personal income affect the market?

Answer
A
It will make goods cheaper to produce.
B
It will make stores attempt to sell more goods.
C
It will make consumers want to buy goods rather than save.
D
It will make consumers buy fewer goods and demand lower prices.

Explanation

When personal income decreases, consumers generally have less money available to spend. They tend to buy fewer goods, reducing demand; this can put downward pressure on prices. Therefore, “It will make consumers buy fewer goods and demand lower prices” is the best answer.

AI-written and checked against the verified answer.

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