Draw the graph · Micro · Supply and demand
Incomes rise, diners eat out
Drag a curve sideways, or use its arrows. A curve you do not move is a curve you are saying stays put. Make each shift clear enough that a reader could see it.
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Demand shifts right. Supply stays put.
Income is a demand-side factor. With more to spend, households want more restaurant meals at every price, so demand shifts right. Restaurants' costs have not changed, so supply stays where it was. The higher price draws more meals out of existing restaurants, a movement along supply.
Price rises and quantity rises.
Common mistake. Some students shift supply right because 'restaurants will serve more meals.' They do serve more, but only because the higher price pulls them along the supply curve. The curve that moved is demand.
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Lesson: Shifts in Demand