Which of the following must be true if good X is a normal good and income increases?

Question

Quizplus · Accepted Answer

When income increases and good X is a normal good, the demand for X will increase. This means that people can afford to buy more of the good, and therefore the quantity sold and bought may also increase. However, it is not necessarily true that the price will increase - this will depend on other factors such as the elasticity of demand and supply for the good. Therefore, option C is the best choice as it acknowledges the possibility of an increase in both demand and quantity sold/bought, without making assumptions about the price.

Which of the Following Must Be True If Good X