An increase in consumer income will lead to an increase in supply.

Name: An increase in consumer income will lead to an increase in supply.
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Question

Quizplus · Accepted Answer

An increase in consumer income will lead to an increase in demand, not supply. As consumers have more disposable income, they are able to purchase more goods and services, leading to an increase in demand. The increase in demand may then lead to an increase in supply as producers seek to meet the higher demand, but it is not a direct cause-and-effect relationship.

An Increase in Consumer Income Will Lead to an Increase