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:

Question

Quizplus · Accepted Answer

An increase in income will cause an increase in the demand for normal goods, such as product X. This will lead to an increase in both the equilibrium price and quantity of X as the demand curve shifts to the right.

In the Following Question You Are Asked to Determine,other Things