Pens are normal goods.What will happen to the equilibrium price of pens if the price of pencils rises,consumers experience an increase in income,writing in ink becomes fashionable,people expect the price of pens to rise in the near future,the population increases,fewer firms manufacture pens,and the wages of pen-makers increase?

Question

Quizplus · Accepted Answer

The equilibrium price of pens will rise due to several factors: increased consumer income, fashion trends favoring ink, expected future price increases, population growth, reduced supply from fewer manufacturers, and higher production costs due to increased wages.

Pens Are Normal Goods