If good A is a normal good and income increases, the equilibrium price of A and the equilibrium quantity of A .

Question

Quizplus · Accepted Answer

A normal good is one for which demand increases as income increases. This means that as income increases, the demand for good A will increase, leading to an increase in both the equilibrium price of A and the equilibrium quantity of A. Therefore, choice C (rises; increases) is the correct answer.

If Good a Is a Normal Good and Income Increases