A shift in the demand curve for sailboats resulting from an increase in incomes will lead to

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Business

Jamar George

21 March, 08:07

A shift in the demand curve for sailboats resulting from an increase in incomes will lead to

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Mekhi Stout · Answer 1

A shift in the demand curve for sailboats resulting from an increase in incomes will lead to an increase in prices of sailboats.

Explanation:

An increase in income leads to an increase in the demand for sailboats and this causes the demand curve to shift to the right.

At equilibrium price, quantity demanded equals quantity supplied.

Therefore, an increase in demand for sailboats, when supply remains the same, will cause prices of sailboats to increase, thereby forming a new equilibrium price.