Asked by Ke'Darius Thornton on Jun 30, 2024
Verified
How does an increase in income affect the market for iPads (normal good) ?
A) The demand curve for iPads shifts to the right
B) The demand curve for iPads shifts to the left
C) The supply curve for iPads shifts to the right
D) The supply curve for iPads shifts to the left
Normal Good
A good for which demand increases as the income of the consumer increases, and vice versa.
Income Increase
Refers to a rise in the amount of money earned by an individual or entity, which can affect purchasing power and economic status.
Demand Curve
A graphical representation showing the relationship between the price of an item and the quantity demanded at those prices.
- Differentiate between standard and substandard goods, including the impact of variations in income on their demand.
Verified Answer
BA
Bennett AdjayeJul 01, 2024
Final Answer :
A
Explanation :
An increase in income would lead to an increase in the affordability of iPads, thus leading to a higher demand for iPads. This would cause the demand curve for iPads to shift to the right.
Learning Objectives
- Differentiate between standard and substandard goods, including the impact of variations in income on their demand.