Answer:
D. It increases
Step-by-step explanation:
Demand for goods increases when per capita income and disposable income increase. This is because per capita income and disposable income are measures of the amount of money that individuals have available to spend on goods and services. When these measures increase, individuals typically have more money to spend, and they are therefore more likely to purchase goods and services.
For example, if an individual's per capita income increases, they may have more money to spend on discretionary items such as clothing, electronics, or leisure activities. As a result, the demand for these goods and services may increase, leading to an overall increase in demand for goods. Similarly, if an individual's disposable income increases, they may have more money to spend on necessities such as food, housing, or transportation. This may lead to an increase in demand for these goods and services, as well as an overall increase in demand for goods.
Overall, an increase in per capita income and disposable income typically leads to an increase in demand for goods, as individuals have more money to spend on the things they need and want. This can have a positive effect on the economy, as it can lead to increased production and sales, and can help to drive economic growth.