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

If A is a normal good and income increases, consumers would have more purchasing power which would likely lead to an increase in demand. The new demand curve would shift to the right, from DS1U1B1 to DS2U2B2, causing a movement from point A to point B where the quantity demanded is higher. Therefore, B is the best choice.

Use the Figure Below to Answer the Following Questions