ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -iPhone is still a normal good, therefore the increase in income will cause the demand curve for iPhones to shift rightward. Additionally, the increase in one of iPhone’s production factors will shift the supply curve to the right. The overall effect is an increase in the equilibrium quantity of iPhones.

Detailed explanation-2: -Understanding the Income Effect For normal economic goods, when real consumer income rises, consumers will demand a greater quantity of goods for purchase. The income effect and substitution effect are related economic concepts in consumer choice theory.

Detailed explanation-3: -Normal and inferior goods A product whose demand rises when income rises, and vice versa, is called a normal good.

Detailed explanation-4: -In the case of normal goods, income and demand are directly related, meaning that an increase in income will cause demand to rise and a decrease in income causes demand to fall.