Suppose the graph shown depicts the demand for a normal good. A shift from A to B might be caused by:
A) an increase in price.
B) a decrease in price.
C) an increase in income.
D) a decrease in income.

Question

Suppose the graph shown depicts the demand for a normal good. A shift from A to B might be caused by:
A) an increase in price. 
B) a decrease in price. 
C) an increase in income. 
D) a decrease in income.

Quizplus · Accepted Answer

A shift from A to B indicates an increase in demand, which could be caused by an increase in income (assuming it is a normal good).

Suppose the Graph Shown Depicts the Demand for a Normal