$\text { Table } 27.1 \mathrm{a}$ $\begin{array}{ccc} \hline \text {Price}& \text { Quantity Demanded }& \text {Quantity Supplied per}\ & \text {per month}&\text { month}\ \hline 35,000 & 35,000 & 55,000 \ \hline \$ 30,000 & 40,000 & 50,000 \ \hline \$ 25,000 & 45,000 & 45,000 \ \hline \$ 20,000 & 50,000 & 40,000 \ \hline 15,000 & 55,000 & 35,000 \ \hline \end{array}$ -Assume Diagram 27.1a represents the market for wheat bread. What is a possible cause of the shift in demand from D₁ to D₂? A) An increase in the cost of flour used to make wheat bread. B) An increase in consumer income. C) A decrease in the price of rye bread (a substitute for wheat bread). D) A decrease in wages paid to workers in the bread factory.

Question

Quizplus · Accepted Answer

An increase in consumer income would lead to an increase in demand for wheat bread, which would shift the demand curve from D₁ to D₂. Option A, an increase in the cost of flour, would likely result in a decrease in supply, leading to a leftward shift of the supply curve, not a shift of the demand curve. Option C, a decrease in the price of rye bread, would likely result in a decrease in demand for wheat bread, leading to a leftward shift of the demand curve, not a shift to the right. Option D, a decrease in wages, would likely result in a decrease in supply, leading to a leftward shift of the supply curve, not a shift of the demand curve.

Table 27.1a\text { Table } 27.1 \mathrm{a} Table 27.1a -Assume Diagram 27

$\text { Table } 27.1 \mathrm{a}$ -Assume Diagram 27