A decrease in the demand for recreational fishing boats might be caused by which of the following?

• A. A decrease in the price of fishing equipment
• B. An increase in the price of recreational fishing boats
• C. An increase in the population of fishing enthusiasts
• D. A decrease in consumer incomes

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of demand in microeconomics. Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices, holding other factors constant.
2. Step 2: Identify factors that cause a shift in the demand curve. These include changes in consumer income, prices of related goods (substitutes and complements), consumer preferences, expectations, and population.
3. Step 3: Analyze each option to see if it would cause a decrease in demand for recreational fishing boats. For example, a decrease in the price of fishing equipment (a complement) would typically increase demand for boats, not decrease it.
4. Step 4: Recognize that an increase in the price of recreational fishing boats causes a movement along the demand curve (a decrease in quantity demanded), not a shift in demand itself.
5. Step 5: Understand that a decrease in consumer incomes reduces consumers' purchasing power, leading to a leftward shift in the demand curve for normal goods like recreational fishing boats, thus decreasing demand.