With a Downsloping Demand Curve and an Upsloping Supply Curve

question 150

Multiple Choice

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will

• A) increase equilibrium price and quantity if the product is a normal good.
• B) decrease equilibrium price and quantity if the product is a normal good.
• C) have no effect on equilibrium price and quantity.
• D) reduce the quantity demanded but not shift the demand curve.

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