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…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 13RQ: What does a downward-sloping demand curve mean about how buyers in a market will react to a higher...

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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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