3.4 Market Effects of Changes in Demand
Figure 3.3
-Figure 3.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Question

3.4 Market Effects of Changes in Demand
  Figure 3.3
-Figure 3.3 illustrates the demand for tacos. Assume tacos are a normal good. An increase in income would bring about a movement from

Quizplus · Accepted Answer

An increase in income would cause an increase in demand for tacos, shifting the demand curve from D₀ to D₁. Points A and C are specific points on the original demand curve, so they are not affected by the shift in demand. Therefore, the correct answer is D) D₀ to D₁.