Question

Suppose that video game discs are a normal good. If the income of video game players​ increases, you predict that in the market for video games

Answer 1

Answer:

Both equilibrium price and quantity will increase.

Explanation:

An increase in the income of video game players will surely lead to an upward shift in the supply and demand curve. This shift in the supply and demand curve would affect the equilibrium price and quantity positively leading to a correspondent increase in the equilibrium price and quantity.