Exhibit 4-4  Supply and Demand Curves for Good X an Increase

question 127

Multiple Choice

Exhibit 4-4  Supply and demand curves for good X An increase in buyers' income, assuming good X is a normal good, combined with an increase in the wage rate paid to workers producing good X would be represented by which of the following changes in equilibrium shown in Graph C of Exhibit 4-4?

• A) E₁ to E₂.
• B) E₁ to E₃
• C) E₃ to E₂.
• D) E₁ to E₃.
• E) E₄ to E₁.

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