The diagram illustrates the demand and supply curves for a normal good (X). Q1P1 is the starting equilibrium. Assuming all other factors remain constant, what might lead to the market equilibrium changing to Q2P2?
- Aa fall in household incomes and an increase in interest rates
- Ba rise in workers’ real wages in all sectors of the economy
- Can increase in income tax and a rise in the specific tax levied on X
- Dan increase in the price of a substitute product for X and a fall in the costs of producing X