An increase in income increases the supply of all goods.

Question

Quizplus · Accepted Answer

An increase in income does not necessarily increase the supply of all goods. The supply of individual goods depends on various factors such as production costs, availability of resources, technology, and competition in the market. An increase in income may lead to an increase in demand for certain goods, which in turn may increase their supply. However, it does not automatically increase the supply of all goods.

An Increase in Income Increases the Supply of All Goods