Good X is a normal good.If the average income of those who buy good X rises,the _____________ curve for good X will shift ____________ resulting in a(n)_____________ in the equilibrium price of X and a(n)____________ in the equilibrium quantity of X.
A) supply; rightward; decrease; increase.
B) demand; leftward; decrease; decrease
C) demand; rightward; increase; increase
D) supply; leftward; increase; decrease
E) supply; leftward; increase; increase

Question

Quizplus · Accepted Answer

Since good X is normal, an increase in average income will lead to an increase in demand for good X. This means that the demand curve for good X will shift rightward, resulting in an increase in the equilibrium price and quantity of good X. Therefore, the correct answer is C: demand; rightward; increase; increase.

Good X Is a Normal Good