PRICE (Thousands of dollars per sedan) 30 20 Demand for Sedans Demand for Sedans Price of a sedan (Thousands of Demand 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) dollars) Quantity Demanded (Sedans per month) Demand Shifters 20 450 Average Income (Thousands of 50 dollars) Price of Gas 4 (Dollars per gallon) Price of a Subway Ride (Dollars) 2 Consider the graph. Suppose that the price of a sedan increased from $15,000 to $20,000. This would cause a curve An increase in average income causes a rightward are the demand curve; therefore, you may conclude that sedans good. (Hint: Try substituting different values for Average Income in the calculator and observing what happens.) Suppose that, due to an increase in the supply of gasoline, the price of a gallon of gas falls from $4 to $3. Because sedans and gasoline a decrease in the price of a gallon of gas shifts the demand curve for sedans to the are 1) movement along or shift of 2) shift of or movement along 3) a normal or an inferior 4) substitutes or complements the demand