We observed that the price of a good rises and the quantity purchased also rises.Everything else being equal, it is consistent that
A)the price of a substitute good fell.
B)the price of a complement rose.
C)income rose.
D)costs of inputs increased.

Question

Quizplus · Accepted Answer

When income rises, consumers have more purchasing power, allowing them to buy more goods even if prices increase. This scenario aligns with the observation that both the price and quantity purchased of a good have risen, suggesting an increase in demand possibly due to higher income levels.

We Observed That the Price of a Good Rises and the Quantity