Suppose consumer income increases.If grass seed is a normal good,the equilibrium price of grass seed will
A)decrease,and producer surplus in the industry will decrease.
B)increase,and producer surplus in the industry will increase.
C)decrease,and producer surplus in the industry will increase.
D)increase,and producer surplus in the industry will decrease.

Question

Quizplus · Accepted Answer

When consumer income increases, the demand for normal goods like grass seed increases, leading to a higher equilibrium price and an increase in producer surplus.

Suppose Consumer Income Increases