2) Which of the following would result in a movement from point B on D₂ to point A on D₁?

a) There was an increase in income (assuming that good X is an inferior good) and technology remained constant.

b) There was an increase in income (assuming that good X is a normal good) and technology remained constant

c) There was an increase in income (assuming that good X is an inferior good) and technology improved.

d) There was an increase in income (assuming that good X is a normal good) and technology declined.

3) Suppose equilibrium is at point A. Something then changes, and equilibrium becomes point C. Which of the following is consistent with the change in equilibrium from point A to C (assuming that good X is a normal good)?

a) There was a decrease in the number of buyers and business taxes increased.

b) There was an increase in the number of buyers and business taxes decreased.

c) There was an increase in the number of buyers and business taxes increased.

d) There was a decrease in the number of buyers and business taxes decreased.