Exhibit 4-4 Supply and demand curves for good X Which of the graphs in Exhibit 4-4 illustrates an increase in buyers' income, assuming that good X is a normal good?

Question

Exhibit 4-4  Supply and demand curves for good X  Which of the graphs in Exhibit 4-4 illustrates an increase in buyers' income, assuming that good X is a normal good?

Quizplus · Accepted Answer

Graph A shows an outward shift in the demand curve which indicates an increase in buyers' income for good X, assuming it is a normal good. The shift in demand curve to the right represents an increase in demand at each price level.

Exhibit 4-4 Supply and Demand Curves for Good X Which