Given a downward-sloping demand curve and an upward-sloping supply curve for a product,an increase in consumer incomes will:

Question

Quizplus · Accepted Answer

If the product is a normal good, an increase in consumer income will shift the demand curve to the right, indicating that consumers will demand more of the product at any given price. This will result in a higher equilibrium price and quantity as demand intersects with supply at a higher quantity and price point.

Given a Downward-Sloping Demand Curve and an Upward-Sloping Supply Curve