What occurs to equilibrium price and quantity of new cars
New cars are a normal good. Suppose that the economy enters a period of strong economic expansion so that people's income increases substantially. What happens to the equilibrium price and quantity of new cars?
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Assume that economy enters period of strong economic expansion so that people's income increases substantially. What occurs to equilibrium price and quantity of new cars?
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Is the observation that price rose and quantity increased consistent with law of demand? Explain Why or why not?
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