If an increase in income leads to an increase in the demand curve for sailboats, this will lead to
A)higher prices of sailboats.
B)lower prices of sailboats.
C)a corresponding shift in the supply curve for sailboats.
D)reduced output of sailboats.
E)no change in the price of sailboats.

Question

Quizplus · Accepted Answer

An increase in the demand curve for sailboats, assuming supply remains constant, typically leads to higher prices due to increased demand. This is because more people are willing to buy sailboats at any given price, which can lead to sellers raising prices.

If an Increase in Income Leads to an Increase in the Demand