Use the Figure Below to Answer the Following Questions

question 29

Multiple Choice

Use the figure below to answer the following questions.
Figure 3.2.2
-Refer to Figure 3.2.2.If consumers' income increases,

• A)the demand curve for pizzas shifts from D₁ to D₂ if a pizza is a normal good.
• B)a movement from point A to point B on D₁ occurs.
• C)the quantity of pizzas demanded increases.
• D)the quantity of pizzas supplied decreases.
• E)the supply of pizzas increases.

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Definitions:

Federal Income Tax Withholding

The amount of federal income tax withheld from an employee's paycheck, based on their earnings and tax filing status.

Net Pay

The amount of money remaining from an employee's gross pay after deductions like taxes, insurance premiums, and retirement contributions have been subtracted.

FICA Tax

A U.S. federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, disabled people, and children of deceased workers.

Federal Income Tax

A tax levied by the government on the annual income of individuals, corporations, trusts, and other legal entities.