Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities 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 upward along the supply curve.
The equilibrium point would move upward along the supply curve.

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

The equilibrium point would move downward along the supply curve.
The equilibrium point would move downward along the supply curve.

The supply curve would shift to the left.

Answer 1

In the context of baseball cards being a normal good, an increase in incomes would lead to an increase in demand for baseball cards. This is because consumers, having more income, would be willing and able to buy more of them.

On a graph of the supply and demand curves:

• The demand curve would shift to the right due to the increase in demand.
• The supply curve would remain unchanged.

Thus, the equilibrium point would move to a new intersection of the supply curve and the new, right-shifted demand curve, resulting in a higher equilibrium price and quantity.

None of the provided responses accurately describe the effect of an increase in incomes on the graph. The correct interpretation would be that the demand curve shifts to the right. However, if you must choose from the given options, note that the responses lack the correct explanation.