Exhibit 5-9 Supply and demand curves for good X

-As shown in Exhibit 5-9, assuming good X is a normal good, an increase in consumer income, other factors held constant, could move the equilibrium from point E to point:
A) A.
B) B.
C) C.
D) D.

Question

Exhibit 5-9 Supply and demand curves for good X
​ 
-As shown in Exhibit 5-9, assuming good X is a normal good, an increase in consumer income, other factors held constant, could move the equilibrium from point E to point: ​
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

An increase in consumer income for a normal good will increase demand, shifting the demand curve to the right, leading to a new equilibrium at a higher price and quantity, which is typically represented by a point like C.

Exhibit 5-9 Supply and Demand Curves for Good X