In the market for a normal good,what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?

Question

Quizplus · Accepted Answer

An increase in consumer income leads to an increase in demand for normal goods. This increase in demand leads to an increase in the equilibrium price and quantity. As the quantity demanded increases, suppliers will increase their production to meet the higher demand, resulting in an increase in the quantity supplied as the equilibrium point moves along the supply curve. Therefore, the best choice is D.

In the Market for a Normal Good,what Is the Ultimate