Which of the following must be true if good X is a normal good and income increases?
a. The demand for X will increase, and thus the price and quantity sold and bought will decrease.
b. The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
c. The demand for X will increase, and thus the price and quantity sold and bought will increase.
d. The demand for X will decrease, and thus the price and quantity sold and bought will increase.
e. The demand for X will increase, and thus the price and quantity sold and bought will remain the same.
Question 2
If consumer incomes go up and cars are a normal good, the effect on the demand for cars ceteris paribus, will be a(n):
a. upward movement along the demand curve for cars.
b. downward movement along the demand curve for cars.
c. rightward shift in the demand curve for cars.
d. leftward shift in the demand curve for cars.
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