Assume the graph shown represents the market for button-up shirts and was originally in equilibrium with D and S. What type of shock might cause a shift from D to D₂?

Question

Quizplus · Accepted Answer

An increase in income would cause a shift to the right in the demand curve, resulting in a new equilibrium point at D₂. The other options (an increase in the price of buttons, ties, or sweatshirts) would not directly impact the demand for button-up shirts and would result in a movement along the demand curve rather than a shift.

Assume the Graph Shown Represents the Market for Button-Up Shirts