Assume that cotton is a normal good.Which of the following would cause both the equilibrium price and equilibrium quantity of cotton to increase?
A)an increase in consumer income
B)a drought that sharply reduces cotton output
C)a decrease in consumer income
D)unusually good weather that results in a bumper crop of cotton

Question

Quizplus · Accepted Answer

An increase in consumer income would lead to an increase in demand for cotton, a normal good, causing both the equilibrium price and quantity to rise.

Assume That Cotton Is a Normal Good