Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. Figure 9.2
-Refer to Figure 9.2. Suppose demand for wheat is initially D₂. If consumer incomes increase, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat, and individual profit-maximizing firms will produce ________ bushels of wheat.

Question

Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.

Figure 9.2
-Refer to Figure 9.2. Suppose demand for wheat is initially D₂. If consumer incomes increase, then demand for wheat will shift to ________. This will ________ the equilibrium price of wheat, and individual profit-maximizing firms will produce ________ bushels of wheat.

Quizplus · Accepted Answer

An increase in consumer incomes, assuming wheat is a normal good, would shift the demand curve to the right (D₃), leading to an increase in the equilibrium price and a higher quantity of wheat produced (15 bushels).

Refer to the Information Provided in Figure 9