If the price and quantity for a normal good,Good X,is $8 and 6 units at the original equilibrium,what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?
A) $10 and 4 units
B) $10 and 8 units
C) $6 and 4 units
D) $6 and 8 units
E) $10 and 2 units

Question

Quizplus · Accepted Answer

An increase in income would shift the demand curve for Good X to the right. This means consumers are willing and able to buy more Good X at every price level. As a result, both the price and quantity of Good X will increase. Choice B ($10 and 8 units) represents an increase in both price and quantity, making it the most plausible option.

If the Price and Quantity for a Normal Good,Good X,is