-In the above figure, an increase in income is best demonstrated by a
A)shift of D₁ to D₂ in Graph A, if good A is a normal good.
B)shift of D₂ to D₁ in Graph A, if good A is a normal good.
C)movement along D₀ from P₁ to P₂ in Graph B.
D)movement along D₀ from P₂ to P₁ in Graph B.

Question

-In the above figure, an increase in income is best demonstrated by a
A)shift of D₁ to D₂ in Graph A, if good A is a normal good. 
B)shift of D₂ to D₁ in Graph A, if good A is a normal good. 
C)movement along D₀ from P₁ to P₂ in Graph B. 
D)movement along D₀ from P₂ to P₁ in Graph B.

Quizplus · Accepted Answer

An increase in income for a normal good leads to an increase in demand, which is shown by a rightward shift of the demand curve from D₁ to D₂.

-In the Above Figure, an Increase in Income Is Best