If there is an increase in income, which of the following is true?

Question

Quizplus · Accepted Answer

When there is an increase in income, consumers have more purchasing power and are willing and able to buy more goods and services. This means that the demand for normal goods, which are goods that consumers buy more of as their income increases, will increase. The demand for complementary goods, which are goods that are consumed together with other goods, and the demand for substitute goods, which are goods that can be used in place of other goods, may also increase, but not necessarily. The supply for all goods is not affected by an increase in income.

If There Is an Increase in Income, Which of the Following