4.4 Market Effects of Changes in Demand

-Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Question

4.4 Market Effects of Changes in Demand
 
-Figure 4.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

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An increase in income, assuming tacos are a normal good, would increase the demand for tacos. This is represented by a shift of the demand curve to the right, from D0 to D1, indicating a higher quantity demanded at each price level.