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Figure: Shifts in Demand and Supply III
-(Figure: Shifts in Demand and Supply III) Look at the figure Shifts in Demand and Supply III. The figure 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 designer boots, a normal good?
A)panel A
B)panel B
C)panel C
D)panel D

Question

Use the following to answer questions :
Figure: Shifts in Demand and Supply III 
-(Figure: Shifts in Demand and Supply III) Look at the figure Shifts in Demand and Supply III. The figure 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 designer boots, a normal good?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

An increase in consumer incomes will increase the demand for normal goods like designer boots, shifting the demand curve to the right. Panel A shows a rightward shift in the demand curve, which is consistent with this scenario.

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