Multiple Choice
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.
- An increase in income, if X is a normal good, will:
A) increase D, increase P, and increase Q.
B) increase D, increase P, and decrease Q.
C) increase S, increase P, and increase Q.
D) decrease D, increase P, and increase Q.
Correct Answer:
Verified
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