If tortilla chips are a normal good,when there is an increase in income,equilibrium price _____ and equilibrium quantity _____.
A)decreases;increases.
B)decreases;decreases.
C)increases;increases.
D)increases;decreases.

Question

Quizplus · Accepted Answer

Since tortilla chips are a normal good, an increase in income will lead to an increase in demand. As a result, both equilibrium price and quantity will increase.

If Tortilla Chips Are a Normal Good,when There Is an Increase