The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-Which of the following will cause an inward shift in the demand for steaks at a restaurant?
A)A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease
B)A 50 percent reduction in the price of steaks
C)A double-digit increase in the price of chicken
D)A recession leading to a significant fall in the income levels of consumers
E)The expectation that the price of steaks will double within two months

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-Which of the following will cause an inward shift in the demand for steaks at a restaurant?
A)A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease 
B)A 50 percent reduction in the price of steaks 
C)A double-digit increase in the price of chicken 
D)A recession leading to a significant fall in the income levels of consumers 
E)The expectation that the price of steaks will double within two months

Quizplus · Accepted Answer

A recession leading to a significant fall in the income levels of consumers will cause an inward shift in demand for steaks at a restaurant. This is because during an economic downturn, consumers tend to reduce their spending on luxury items like steak and switch to cheaper alternatives. Option A is incorrect because it would increase the demand for steaks. Option B would result in an outward shift in demand, and option E may result in a temporary increase in demand as consumers rush to buy steaks before the price increases, but it will not cause an inward shift in the long run. Option C may cause consumers to switch to steak, resulting in an outward shift in demand.

The Table Given Below Reports the Quantity Demanded of a Good