According to the New York Times (November 18, 2006), the number of car producers in China is increasing rapidly. The newspaper reports that "China has more car brands now than the United States. . . . But while car sales have climbed 38 percent in the first three quarters of this year, automakers have increased their output even faster, causing fierce competition and a slow erosion in prices." At the same time, Chinese consumers' incomes have risen. Assume that cars are a normal good. Use a diagram of the supply and demand curves for cars in China to explain what has happened in the Chinese car market.