Question

if consumers income increases what happens to p and q ?

Answer 1

If CONSUMERs income Increases then,if good is normal,then it will increase demand and shift demand curve to right.

At initial equilibrium price,there will be Excess demand,so to people start willing to pay high price for good ,which lead to increase in equilibrium price and increase equilibrium Quantity.

If good is inferior then,

it will decrease demand and shift demand curve to left.

At initial equilibrium price,there will be Excess supply,so seller start willing to sell at lower price for good ,which lead to decrease in equilibrium price and decrease equilibrium Quantity.