In a simple model of the supply and demand for pizza, when buyers' income increases, the price of pizza _____ and the quantity purchased _____.
A)increases; decreases
B)increases; increases
C)decreases; increases
D)decreases; decreases

Question

Quizplus · Accepted Answer

When buyers' income increases, the demand for normal goods like pizza typically increases, leading to a higher price and a higher quantity purchased.

In a Simple Model of the Supply and Demand for Pizza