If the good in the above figure is a normal good and income rises, then the new equilibrium quantity

Question

Quizplus · Accepted Answer

Since the good is a normal good and income has risen, consumers' purchasing power has increased. This will lead to an increase in demand and shift the demand curve to the right. The new equilibrium will be at a higher quantity than the original equilibrium, which was at 300 units. Therefore, the new equilibrium quantity will be more than 300 units.

If the Good in the Above Figure Is a Normal