In the figure to the right, the current position of the demand curve for a good is D₁, and the price of the good, which is a normal good, is $4. If there is an increase in consumer incomes, which way will the demand curve shift? Will the quantity demanded of the good increase or decrease? 1.) Using the line drawing tool, draw the new demand curve for a normal good after consumer incomes increase. Label this line 'D₂.-' 2.) Using the point drawing tool, indicate the point on the new demand curve, D₂, that corresponds to the quantity demanded when the price is $4 per good. Label this point 'A₂. Carefully follow the instructions above, and only draw the required objects. 10- 9- c Price per Unit of the Good ($) N N 9⁹ 16 + 4 L 1 A₁ 23 67 Quantity of the Good Demanded 8 D₁ 9 10 Q M

In the figure to the right, the current position of the demand curve for a good is D₁, and the price of the good, which is a normal good, is $4. If there is an increase in consumer incomes, which way will the demand curve shift? Will the quantity demanded of the good increase or decrease? 1.) Using the line drawing tool, draw the new demand curve for a normal good after consumer incomes increase. Label this line 'D₂.-' 2.) Using the point drawing tool, indicate the point on the new demand curve, D₂, that corresponds to the quantity demanded when the price is $4 per good. Label this point 'A₂. Carefully follow the instructions above, and only draw the required objects. 10- 9- c Price per Unit of the Good ($) N N 9⁹ 16 + 4 L 1 A₁ 23 67 Quantity of the Good Demanded 8 D₁ 9 10 Q M

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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