Question

X is a normal good for its consumers. Their income increases. Explain its chain of effect on equilibrium price demand and supply of X.​

Answer 1

Answer:

so , here is your answer

Explanation:

Increase in income results in increase in demand for the normal good DD curve shifts to dd. There is excess demand equal to AB at OP price. ... At this price DD = SS. Market is in equilibrium again at a higher price and equilibrium quantity