Suppose that steak is a normal good.When income increases,the equilibrium quantity of steak will ________ and the equilibrium price of steak will ________.

Question

Quizplus · Accepted Answer

When a good is considered a normal good and income increases, the demand for that good will also increase. Therefore, as the demand for steak increases, the equilibrium quantity of steak will rise. Additionally, if demand increases and supply remains constant, the equilibrium price of steak will also rise. Thus, the correct answer is A, rise; rise.

Suppose That Steak Is a Normal Good