Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decreases because of

Question

Quizplus · Accepted Answer

When the price of a normal good like apples increases, the quantity demanded decreases due to both the substitution effect (consumers switch to cheaper alternatives) and the income effect (the higher price effectively reduces consumers' purchasing power).

Apples Are a Normal Good, So If the Price of an Apple