A shift in the demand curve for sailboats resulting from an increase in incomes will lead to
A)higher prices of sailboats.
B)lower prices of sailboats.
C)a corresponding shift in the supply curve for sailboats.
D)lower output of sailboats.
E)no change in the price of sailboats.

Question

Quizplus · Accepted Answer

An increase in incomes will result in a shift in the demand curve for sailboats to the right. This means that consumers are willing to buy more sailboats at each price level. As a result, sailboat manufacturers will increase the price of sailboats to capture the additional demand from consumers. Therefore, higher prices of sailboats will be the outcome.

A Shift in the Demand Curve for Sailboats Resulting from an Increase