If the price of a normal good falls, what happens to the quantity ...

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If the price of a normal good falls, what happens to the quantity demanded of that good?
 
  What will be an ideal response?

Question 2

The town of Harmonia gives away all 500 tickets to its annual Founder's Day Free Concert-in-the-Park to local residents.
 
  Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as 75 each. Is a transaction where someone pays a resident 75 for a free ticket economically efficient?
  A) Yes, it was a voluntary exchange that benefited both parties.
  B) No, the buyer paid too much for the ticket.
  C) No, people should never be allowed to sell items they received for free.
  D) Yes, but it is efficient only from the perspective of the seller and not from the perspective of the buyer.

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Answer to Question 1

If the price of a normal good falls, the quantity demanded of that good increases because the substitution effect and the income effect both bring an increase in the quantity demanded.

Answer to Question 2

A