Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good)to increase?
A)an increase in consumer income
B)a drought that sharply reduces cotton output
C)a decrease in consumer income
D)unusually good weather that results in a bumper crop of cotton

Question

Quizplus · Accepted Answer

An increase in consumer income would increase the demand for cotton, a normal good, leading to higher equilibrium price and quantity.

Which of the Following Would Cause Both the Equilibrium Price