Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decrease because of

Question

Quizplus · Accepted Answer

When the price of a normal good like apples increases, consumers may buy less of it both because it has become relatively more expensive compared to other goods (substitution effect) and because their purchasing power has decreased, making them feel effectively poorer (income effect).

Apples Are a Normal Good, So If the Price of an Apple