What is the effect on a normal product if income increases?
A)It will cause an increase in the quantity demanded.
B)It will cause an increase in demand.
C)It will cause a decrease in demand.
D)It will cause an increase in supply.
E)It will cause a decrease in supply.

Question

Quizplus · Accepted Answer

For normal goods, an increase in income leads to an increase in demand, not just an increase in the quantity demanded. This means people are willing and able to purchase more of the good at all price levels, shifting the demand curve to the right.

What Is the Effect on a Normal Product If Income