The following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment. Suppose a new scientific study shows that San Diego is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city. *graph Now suppose Congress passes a new tax that decreases the income of San Diego residents. If cereal is a normal good, this will cause the demand for cereal to increase or decrease

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The following graph shows the market for cereal in San Diego, where there are over 1,000 stores that sell cereal at any given moment. Suppose a new scientific study shows that San Diego is the most polluted city in the world. Due to health concerns, a significant number of families move out of the city.

*graph

Now suppose Congress passes a new tax that decreases the income of San Diego residents.

If cereal is a normal good, this will cause the demand for cereal to increase or decrease?

Supply
Demand
Supply
Demand
QUANTITY (Boxes)
PRICE (Dollars per box)
Transcribed Image Text:Supply Demand Supply Demand QUANTITY (Boxes) PRICE (Dollars per box)
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