A demand curve for restaurant meals, which are a normal good, shifts to the left. The point showing quantity demanded then moves down along the new demand curve. Only real incomes and the price of restaurant meals have changed. How should this sequence be interpreted?
Real incomes rose, followed by a fall in the price of restaurant meals.
Real incomes fell, followed by a rise in the price of restaurant meals.
Real incomes fell, followed by a fall in the price of restaurant meals.
Real incomes rose, followed by a rise in the price of restaurant meals.
82 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.