Shoes are a normal good and peopleʹs incomes rise. As a result, the equilibrium price of a pair of shoes________ and the equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When people's incomes rise, they are able and willing to buy more shoes at each price level. This leads to an increase in demand for shoes, causing the equilibrium price to rise. The equilibrium quantity also increases as the market adjusts to the higher demand.

Shoes Are a Normal Good and Peopleʹs Incomes Rise