Final answer:
A decrease in the birthrate would result in a leftward shift of the demand curve for toys, indicating a lower quantity of toys demanded at all price levels, similar to the effect of a decrease in income on the demand for cars.
Step-by-step explanation:
If there were a decline in the birthrate, the demand curve for toys would likely shift to the left. This shift represents a decrease in demand. The reasoning behind this is that toys are typically bought for children, and if there are fewer children due to a lower birthrate, the need and desire for toys would decline. Consequently, the quantity of toys demanded at every given price would also be lower. This is analogous to an example where a slowing economy reduces people's income, causing the demand curve for cars to shift left. For instance, an original price of $20,000 might have generated sales of 18 million cars prior to the income drop, but only 14.4 million after the drop, indicating a leftward shift in demand from Do to D₂. This illustrates a similar contraction in demand that would be expected in the toy market as a result of a decline in birthrate.