Suppose that video game discs are a normal good. If the incomeof video game players increase, you predict that in the market forvideo games,

a) both equilibrium price and quantity will fall

b) equilibrium price will fall but quantity willincrease

c) equilibrium price will increase and quantity willdecrease

d) both equilibrium price and quantity will increase

Option (D) is correct.

Explanation:

It was given that video game is a normal good. We know that there is a positive relationship between the demand for a normal good and income of the consumer, hence, if there is an increase in the income level of the consumer then as a result the demand for a normal good increases which shifts the demand curve for normal good rightwards.

Therefore, this will lead to increase both equilibrium price and equilibrium quantity in the market for video games.