Given a Supply Curve That Is Positively Sloped and a Demand

Multiple Choice

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

A) an increase in equilibrium price and quantity.
B) a decrease in equilibrium price and an increase in equilibrium quantity.
C) a decrease in both equilibrium price and quantity.
D) an increase in equilibrium price and a decrease in equilibrium quantity.