Use the following to answer question(s): Demand Shifters and Supply Shifters

-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes increase.Which panel best describes how this will affect the market for tuxedoes, a normal good?

Question

Use the following to answer question(s): Demand Shifters and Supply Shifters
 
-(Exhibit: Demand Shifters and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose consumer incomes increase.Which panel best describes how this will affect the market for tuxedoes, a normal good?

Quizplus · Accepted Answer

An increase in consumer incomes will increase the demand for normal goods like tuxedoes, shifting the demand curve to the right, as shown in Panel (a).

Use the Following to Answer Question(s): Demand Shifters and Supply