When income rises, demand for an inferior goods falls.
Hence, demand curve shifts to the left.
Decrease in demand will disturb the market equilibrium.
The given equilibrium price and quantity are OP and OQ respectively. Increase in income results in a downward shift of demand curve . At price now, quantity demanded is which is less than the quantity supplied OQ. This will result in competition among suppliers leading to fall in price. The price now settle at a new equilibrium. It is lower than it was before as well as new equilibrium quantity is also less than old equilibrium quantity.