Asked by Tasha Christina on May 19, 2024

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In the market for tacos,a normal good,you observe that the equilibrium price and quantity have increased.This can be caused only by:

A) an increase in the price of beef.
B) an increase in the wages of taco shop workers.
C) fewer taco shops.
D) an increase in the incomes of people who eat tacos.

Taco Shops

Restaurants or food outlets specializing in serving tacos and related Mexican cuisine, often characterized by their variety and regional flavors.

Equilibrium Price

The price point at which the supply of goods matches demand, leading to a stable market condition.

  • Gain insight into the relationship between income transformations and the preference for normal and inferior products.
  • Examine the effect of changes in manufacturing costs on the stability of market prices.
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CJ
chealsey jonesMay 21, 2024
Final Answer :
D
Explanation :
Since tacos are a normal good, an increase in the incomes of people who eat tacos would lead to an increase in demand, causing an increase in both the equilibrium price and quantity. A, B, and C would not directly affect demand for tacos and therefore would not cause an increase in equilibrium price and quantity.