Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities (more) of baseball cards. How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards?(1 point)

Question

Responses

The equilibrium point would move downward along the supply curve because of a drop in demand.
The equilibrium point would move downward along the supply curve because of a drop in demand.

The equilibrium point would move upward along the supply curve because of an increase in demand.
The equilibrium point would move upward along the supply curve because of an increase in demand.

The supply curve would shift to the left.
The supply curve would shift to the left.

The supply curve would shift to the right.

Answer 1

In the case of baseball cards being a normal good, an increase in incomes would lead to an increase in demand for baseball cards. This is because as people have more income, they are willing and able to buy more of these cards.

In a graph of the supply and demand curves for baseball cards, this increase in demand would be represented by a rightward shift of the demand curve. As demand increases while the supply remains the same, the equilibrium point would move to a higher price and a greater quantity.

So, the correct response is:

The equilibrium point would move upward along the supply curve because of an increase in demand.