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2. which of the following can result in an increase in price in a competitive market for a normal good? a) an increase in income. b) a decrease in the price of a complement to this good. c) an increase in the price of a substitute for this good. d) a decrease in the wages paid to workers who produce this good. e) all the above f) a, b and c

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Final answer:

Factors that can increase the price of a normal good in a competitive market include an increase in consumer income, a decrease in the price of a complement, and an increase in the price of a substitute for the good.

Step-by-step explanation:

The factors that can result in an increase in price in a competitive market for a normal good include an increase in income, a decrease in the price of a complement to the good, and an increase in the price of a substitute for the good. When income increases, consumers have more purchasing power and can buy more of the normal goods, which leads to higher demand and potentially increases prices. If the price of a complement to the good decreases, the goods are often bought together, so the reduction in cost of the complement will likely lead to an increased demand for the normal good. Finally, if the price of a substitute increases, consumers might switch their preference to the lower-priced normal good, thus increasing its demand and price. Therefore, the correct answer to which of the following can result in an increase in price in a competitive market for a normal good is f) a, b, and c.

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