If a person is a net supplier of a normal good and its price increases while all other prices stay the same, then his demand for the good must decrease.

Question

Quizplus · Accepted Answer

If a person is a net supplier of a normal good, it means that they supply more of the good than they consume themselves. Therefore, an increase in the price of the good would actually increase their income, and they may choose to supply even more of it. However, if the person is a net consumer of the good, then an increase in price would lead to a decrease in their demand for it.

If a Person Is a Net Supplier of a Normal