Use the figure below to answer the following questions.

Figure 3.5.1
-Initially,the demand curve for good A is D2 in Figure 3.5.1.If income increases and A is a normal good,we would expect to see a movement from point A to point

Question

Use the figure below to answer the following questions.
  
Figure 3.5.1
-Initially,the demand curve for good A is D2 in Figure 3.5.1.If income increases and A is a normal good,we would expect to see a movement from point A to point

Quizplus · Accepted Answer

An increase in income will shift the demand curve for normal goods to the right. Therefore, the movement would be from point A to point B, where the new demand curve (D1) intersects with the original supply curve (S).

Use the Figure Below to Answer the Following Questions