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

-(Exhibit: Demand 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 dress ties, a normal good?

Question

Use the following to answer question(s): Demand and Supply Shifters
 
-(Exhibit: Demand 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 dress ties, a normal good?

Quizplus · Accepted Answer

An increase in consumer incomes would cause a shift to the right in the demand curve for dress ties, as consumers would be willing and able to buy more ties at any given price. Panel (b) shows a rightward shift in the demand curve for dress ties, which would lead to an increase in both equilibrium price and quantity.

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