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 increase in demand with a shift to the right, indicating an increase in buyers' income for good X, assuming it's a normal good. The demand curve shifts to D2, indicating that buyers are willing and able to purchase more of good X at every price level.

Exhibit 4-4 Supply and Demand Curves for Good X