Offsetting Demand Shifts for Normal Good

Steps:

• Identify factors shifting demand: income and substitute prices affect position; own price causes movement along curve.
• For normal good, lower income shifts demand left (less quantity at each price).
• Higher substitute price shifts demand right (more quantity at each price).
• Compare combinations for net zero shift.

Why A is correct:

• Decrease in income shifts left; increase in substitute price shifts right by similar magnitude, leaving curve unchanged (law of demand and ceteris paribus).

Why the others are wrong:

• B: Income increase shifts right; own-price increase moves along curve (no net shift).
• C: Both income increase and substitute price increase shift right (double rightward shift).
• D: Income decrease shifts left; own-price increase moves along curve (net left shift).

Final answer: A