An economist for a computer company predicts that a rise in consumer incomes will increase the demand for consumers. This prediction assumes that: computers are normal goods.
A normal good is a sort of good in economics that sees an increase in demand as a result of an increase in income, as opposed to inferior products, for which the opposite is seen.
In microeconomics, supply and demand are economic theory that explains how prices are determined in a market. All other things being equal, it is assumed that in a competitive market, the unit price for a particular good or other traded goods, such as labor or liquid financial assets, will fluctuate until it settles at a point where the quantity demanded equals the quantity supplied, producing an economic equilibrium for price and quantity transacted.
Personal computers are more in demand as income levels rise. It suggests that as the supply and demand curves for computers rise, so will the cost and accessibility of computers.
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