Answer to Question #306551 in Microeconomics for Ntsako

Question

Due to substantial increase in prices of country A , the real income level of the population in country A decreases. Show on a diagram how the increase in the income level country A will affect the demand for meat which is a natural good . Also indicate how the equilibrium price and equilibrium quantity of meat will increase in country A (5) marks.

Answer 1

equilibrium price and equilibrium quantity will increase