When the demand for a good increases owing to an increase in income, it means that
Answer Details
When the demand for a good increases owing to an increase in income, it means that there is an increase in demand. In this case, people have more money to spend and are willing to buy more of the good. This leads to an increase in the quantity demanded of the good at each price point, which is represented by a rightward shift of the demand curve. Therefore, an increase in income leads to an increase in demand and a higher equilibrium price and quantity.