Reference: ma03202
-(Exhibit: The Market for Videotape Rentals)An increase in buyers' income, assuming videotape rentals are a normal good, would result in a change illustrated by the move from:

Question

Reference: ma03202 
-(Exhibit: The Market for Videotape Rentals)An increase in buyers' income, assuming videotape rentals are a normal good, would result in a change illustrated by the move from:

Quizplus · Accepted Answer

According to the law of demand, when the buyers' income increases, the demand for normal goods (such as videotape rentals) also increase. Therefore, the demand curve shifts to the right. In Figure (a), the move from f to g illustrates a shift in the demand curve to the right, indicating an increase in demand for videotape rentals due to an increase in buyers' income. Therefore, the correct choice is A.

Reference: Ma03202 -(Exhibit: the Market for Videotape Rentals)An Increase in Buyers' Income