Question

What happens in the market for shoes when the consumer income increases and shoes are a normal good?

demand decreases , decreasing price and quantity

supply increases , decreasing price and quantity

supply decreases increasing price and quantity

demand increases, increasing price and quantity

Answer 1

Option D

Step-by-step explanation:

Since the customer's income is increasing then the demand will increase for all the normal goods including the shoes but the cost will also increase as the purchasing power of the customer has risen.

Since the customer is capable to pay more for the same product, the supplier will increase the price of shoe

Option D