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?
a
The equilibrium point would move upward along the supply curve.
b
The equilibrium point would move downward along the supply curve.
c
The supply curve would shift to the right.
d
The supply curve would shift to the left.
a - The equilibrium point would move upward along the supply curve.
The correct answer is c) The supply curve would shift to the right.
When incomes increase, consumers are more willing and able to purchase greater quantities of baseball cards. This increase in consumer demand would result in a shift in the demand curve to the right. However, since baseball cards are considered a normal good, the supply curve is not directly affected by changes in income.
Instead, an increase in income would lead to higher demand for baseball cards, resulting in a shift of the demand curve to the right. As a result, the equilibrium point, where the supply and demand curves intersect, would move upward along the supply curve, indicating a higher quantity demanded and a higher price for baseball cards.