If incomes are rising, in the market for a normal good,
A)its price will rise and the quantity exchanged will rise.
B)its price will rise and the quantity exchanged will fall.
C)its price will fall and the quantity exchanged will rise.
D)its price will fall and the quantity exchanged will fall.

Question

If incomes are rising, in the market for a normal good,
A)​its price will rise and the quantity exchanged will rise.
B)​its price will rise and the quantity exchanged will fall.
C)​its price will fall and the quantity exchanged will rise.
D)​its price will fall and the quantity exchanged will fall.

Quizplus · Accepted Answer

When incomes rise, consumers have more buying power, which leads to an increase in demand for normal goods. This increase in demand leads to a rise in the price of the good as well as an increase in the quantity exchanged.

If Incomes Are Rising, in the Market for a Normal