Final answer:
The most accurate statement about how supply and demand affect income is that an increase in demand for a good or service typically leads to an increase in income.
Step-by-step explanation:
The statement that best describes how changes in supply and demand for goods and services affect income is: When demand for a good or service is high, income increases. This is because, a higher demand for a product can lead to increased sales, which often translates into higher income for businesses and, in turn, their employees. Conversely, when income increases, people tend to purchase more normal goods—products whose demand rises as income rises. Luxury cars, vacations in Europe, and fine jewelry are examples of normal goods where a rise in income can lead to a significant increase in demand. However, the relationship is not the same for inferior goods, which are goods where demand decreases as income increases, like generic brand groceries or used cars.