Question 15If a good is normal and income increases, then a) the supply curve will shift to the right. b) the demand curve will shift to the left. c) the supply curve will shift to the left. d) the demand curve will shift to the right.

Answered: Question 15 If a good is normal and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 15

If a good is normal and income increases, then

		a) the supply curve will shift to the right.
		b) the demand curve will shift to the left.
		c) the supply curve will shift to the left.
		d) the demand curve will shift to the right.

Expert Solution

Step 1: Define normal good

Normal goods refer to those goods which demand increases as income increases for individuals.

A rise in income leads to higher aggregate demand for these goods and vice versa.

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