The only goods you consume are pizza and soda. Both are normal goods. For you, pizza and soda are substitutes. Which of the following leads you to buy more of both goods?
A) The price of a pizza falls.
B) The price of a soda falls.
C) Your income increases.
D) Both answers A and B are correct.

Question

Quizplus · Accepted Answer

An increase in income allows you to buy more of both normal goods, pizza and soda, as they are both normal goods and your purchasing power has increased.

The Only Goods You Consume Are Pizza and Soda