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You are the manager of a car dealership that sells Lincoln series, which are normal goods....

You are the manager of a car dealership that sells Lincoln series, which are normal goods. Although a recession is expected next year, you expect your clients' incomes to increase over the coming year. What will you do about ordering cars for next year as compared to last year? Explain it using demand shifters we’ve learned.

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Market Equilibrium Change in Demand Price Price D l) Quantity Q QQuantity If the income of the buyer increases, the demand for car, which is considered a normal good, increases. The demand curve will shift to the right due to the increase in income. The equilibrium quantity will increase and the equilibrium price will also follow the same suit. The expected increase in demand should compell the seller to order more cars.

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