Suppose Z is a normal good.The equilibrium price and quantity of Z in the year 2013 was $25 and 60 units,respectively.In 2017,the equilibrium price of Z had increased to $35 and the equilibrium quantity had increased to 70 units.Other things remaining the same,which of the following could explain this change?

Question

Quizplus · Accepted Answer

The increase in both price and quantity indicate an increase in demand. A rightward shift of the demand curve would lead to both an increase in price and quantity. A leftward shift of the supply curve would lead to an increase in price and a decrease in quantity. A rightward shift of the supply curve would lead to a decrease in price and an increase in quantity. Therefore, option D is the only plausible explanation.

Suppose Z Is a Normal Good