You Are Asked to Determine, Other Things Equal, the Effects

question 197

Multiple Choice

You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.Refer to the above.An increase in income, if X is a normal good, will:

• A)increase D, increase P, and increase Q.
• B)increase D, increase P, and decrease Q.
• C)increase S, increase P, and increase Q.
• D)decrease D, increase P, and increase Q.

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