If the price and quantity for a normal good, good x, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of good x if we see income increase and all other factors stay constant?

a. $10 and 4 units
b. $10 and 8 units
c. $6 and 4 units
d. $6 and 8 units
e. $10 and 2 units

b. $10 and 8 units

Explanation:

A normal good is a good whose demand increases when income increases.

If income rise, the quantity demanded increases. When there's an excess of demand over supply, prices rise. Producers would also increase supply when there's a rise in price. Therefore, both equilibrium price and quantity increases.

Check the attached image for a graphical representation.

I hope my answer helps you.

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