An increase in consumers' incomes raises the equilibrium price and quantity of fine clothing.

Name: An increase in consumers' incomes raises the equilibrium price and quantity of fine clothing.
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Question

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When consumers' incomes increase, they have more money to spend, which often leads to an increase in demand for normal goods, such as fine clothing. This increased demand shifts the demand curve to the right, leading to a higher equilibrium price and quantity for fine clothing.

An Increase in Consumers' Incomes Raises the Equilibrium Price and Quantity