Leading economic indicators suggest that incomes will be going up next year. In response to these reports, companies are forecasting increased prices for future sales of their goods. As a result of these increases, the supply curve will:

a. shift to the right, causing the equilibrium price to increase.
b. remain the same, but the equilibrium price will increase.
c. shift to the left, causing the equilibrium price to increase.
d. remain the same, but the equilibrium price will decrease.
e. shift to the right, causing the equilibrium price to decrease.

c. shift to the left, causing the equilibrium price to increase.

Explanation:An increase in incomes means the more people will be buying goods and this will lead to an increase in demand , excess demand means businesses can increase prices of their goods. This means they will be producing more products since consumers are demanding and buying more as they can afford to do so.

This increases the supply hence shifting the supply curve to the left.

explanation:

the contractual interest rate is the interest the borrower must pay and the interest the lender receives, or more simply, it is the interest rate stated on a bond whereas the market interest rate is “the investors demand for loaning funds”. therefore, bonds can either be sold at a premium, face value, or discount.

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