Demand and Supply - Demand Shift pg-8
A Reduction in Income Shifts Back Demand for a Normal Good

When income falls, demand for a normal good decreases (shifts back). Suppose the demand curve to the right represents some consumer's demand for attending movies in a theater.

The demand curve labeled DI1 is this consumer's demand curve for movies before income falls. DI2 is the demand curve after income falls. The consumer still goes to the movies after the drop in income, but attends fewer at every price.

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