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What would happen in the market if there was an increase in income and iPhones are a normal good?

asked
User Tzima
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1 Answer

4 votes

Final answer:

If there is an increase in income and iPhones are considered a normal good, it would likely lead to an increase in demand for iPhones.

Step-by-step explanation:

In the market, if there is an increase in income and iPhones are considered a normal good, it would likely lead to an increase in demand for iPhones. This is because a normal good is one whose demand rises when income rises.

When people have more income, they are more likely to purchase iPhones. As a result, the demand curve for iPhones would shift to the right, indicating an increase in the quantity demanded at every price level.

Additionally, with an increase in income, people may also be willing to spend more on iPhones or purchase more expensive models, leading to a higher demand for iPhones.

answered
User Mats Willemsen
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8.1k points
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