When there is a decrease in demand due to a fall in income, while supply remains the same, what happens to the demand curve?

CA Foundation · Business Economics · PYQS · September 2025
When there is a decrease in demand due to a fall in income, while supply remains the same, what happens to the demand curve?
(A) A. It will shifts to the right.
(B) B. It will remain unchanged.
(C) C. It will shifts to the left.
(D) D. It will become vertical.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. It will shifts to the left.

Topics: Theory of Demand and Supply

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