Shoes Are Considered to Be a Normal Good

question 15

Multiple Choice

Shoes are considered to be a normal good.What would happen to the equilibrium price and equilibrium quantity of shoes if income increases and the cost of labor to produce shoes increases?

• A) The equilibrium price will go up and equilibrium quantity will go up.
• B) The equilibrium price will be indeterminate and equilibrium quantity will go up.
• C) The equilibrium price will go down and equilibrium quantity will be indeterminate.
• D) The equilibrium price will go up and equilibrium quantity will be indeterminate.
• E) The equilibrium price will be indeterminate and equilibrium quantity will go down.