You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.An increase in income,if X is a normal good,will:

Question

Quizplus · Accepted Answer

An increase in income will cause an increase in demand for normal goods, therefore D will increase. This will result in an increase in both P and Q, as the demand curve shifts to the right.

You Are Asked to Determine,other Things Equal,the Effects of a Given