There is an increase in incomes due to a tech boom.Which of the following correctly captures the effect of this change on the market for gasoline?
A)Both equilibrium quantity and price will increase.
B)Both equilibrium quantity and price will decrease.
C)Equilibrium quantity will increase,but equilibrium price will decrease.
D)Equilibrium quantity will decrease,but equilibrium price will increase.

Question

Quizplus · Accepted Answer

With an increase in incomes, people can afford to purchase more goods and services, including gasoline. This will shift the demand curve for gasoline to the right, leading to an increase in both equilibrium quantity and price. Therefore, choice A is the correct answer.

There Is an Increase in Incomes Due to a Tech