Sugar is a normal good. You observe that both the equilibrium price and quantity of sugar has fallen over time. Which of the following would be most consistent with this observation?

Question

Quizplus · Accepted Answer

If both the equilibrium price and quantity of sugar has fallen over time, it suggests that there has been a decrease in demand for sugar. This decrease in demand could be due to a change in consumer tastes or preferences, such as a preference for healthier foods or a decrease in the perceived value of sugar. Option A suggests an increase in income, which would typically lead to an increase in demand for normal goods like sugar. Option B suggests changes in the prices of unrelated goods, which would not directly affect the demand for sugar. Option D suggests a positively sloped demand curve, which is unlikely for a normal good like sugar. Therefore, the most consistent option with the observation is C.

Sugar Is a Normal Good