Good a (An Inferior Good) and Good B (A Normal

Multiple Choice

Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute products. Suppose that the price of Good B falls at the same time that consumer income increases. What is the net effect of these two events on equilibrium in the market for Good A?

A) an increase in equilibrium quantity and an indeterminate effect on price
B) a decrease in both the equilibrium price and quantity
C) an indeterminate effect on quantity but an increase in price
D) an increase in both the equilibrium price and quantity