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

If good A is a normal good, an increase in income of the consumers will lead to an increase in demand for good A, leading to a rightward shift in the demand curve. This shift in the demand curve will lead to an increase in both the equilibrium price and quantity of good A.

If Good a Is a Normal Good and Income Increases