Assume the graph shown represents the market for button-up shirts and was originally in equilibrium where demand (D) and supply (S) intersect. What type of shock might cause the demand curve to shift to D₂? A) An increase in the price of buttons B) An increase in the price of ties C) An increase in the price of sweatshirts D) An increase in consumers' incomes

Question

Quizplus · Accepted Answer

An increase in consumers' incomes would shift the demand curve to the right, resulting in a new equilibrium with a higher price and quantity. This could be due to an increase in overall economic growth, a decrease in unemployment rates, or a positive change in consumer confidence.

Assume the Graph Shown Represents the Market for Button-Up Shirts