Suppose that video game discs are a normal good. If the income of video game players increases, you predict that in the market for video games,

Question

Quizplus · Accepted Answer

Since video game discs are a normal good, an increase in the income of video game players will lead to an increase in demand for video games. This increased demand shifts the demand curve to the right, resulting in a higher equilibrium price and quantity.

Suppose That Video Game Discs Are a Normal Good