Which of the following would cause both the equilibrium price and equilibrium quantity of wheat, (assume that wheat is a normal good)to increase?
A)An increase in consumer income
B)A drought that sharply reduces wheat output
C)A decrease in consumer income
D)Unusually good weather that results in a bumper crop of wheat

Question

Quizplus · Accepted Answer

An increase in consumer income, assuming wheat is a normal good, would lead to an increase in demand for wheat. This increased demand would push both the equilibrium price and quantity of wheat upwards, as consumers are willing to buy more wheat at higher prices.

Which of the Following Would Cause Both the Equilibrium Price