Which of the Following Must Be True If Good X

question 395

Multiple Choice

Which of the following must be true if good X is a normal good and income increases?

• A) The demand for X will increase, and thus the price and quantity sold and bought will decrease.
• B) The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
• C) The demand for X will increase, and thus the price and quantity sold and bought will increase.
• D) The demand for X will decrease, and thus the price and quantity sold and bought will increase.
• E) The demand for X will increase, and thus the price and quantity sold and bought will remain the same.

---

Definitions:

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a good or service.

Standby Passenger

A traveler awaiting a seat on a flight or mode of transportation, typically without a reservation for a specific departure.

200-seat Plane

An aircraft designed to accommodate approximately 200 passengers, often used for commercial air travel.