Question

An increase in consumer income increases the demand for automobiles. As a result of the adjustment to a new equilibrium, there is a(n):
A. rightward shift of the supply curve
B. upward movement along the supply curve
C. no change in the graph
D. leftward shift of the supply curve
E. downward movement along the supply curve

Answer 1

Answer:

B. upward movement along the supply curve.

Explanation:

An increase in the income of a consumer income would have a significant impact on the quantity of goods demanded by him or her such as increasing the demand for automobiles. As a result of the adjustment to a new equilibrium, there is an upward movement along the supply curve