Question

What will be the effect on equilibrium price and equilibrium quantity when income increases in case of normal goods?

विकल्प

• Both equilibrium price and quantity fall

• Both equilibrium price and quantity rise

• Equilibrium price rises and quantity falls

• Equilibrium price falls and quantity rises

Answer 1

Both equilibrium price and quantity rise

Explanation:

Normal goods are those whose demand rises as income rises and declines as income decreases. In the case of ordinary products, as income rises, demand rises, and the demand curve shifts to the right. As a result, both the equilibrium price and the equilibrium quantity.