A could be any type in this case. x + y means x.+(y), which would only compile if either a) the type A had a method +, or b) the type A was implicitly convertible to a type with a method +.
The type scala.Numeric provides the ability to write code that abstracts over the numeric system -- it could be called with Double, Int, or even your own exotic numeric system, such as complex numbers.
You can add an implicit parameter to your method of type Numeric[A].
object GenericTest extends Application {
def func1[A](x: A, y: A)(implicit n: Numeric[A]): A = x + y
}
In Scala 2.8, this can be shortened:
object GenericTest extends Application {
def func1[A: Numeric](x: A, y: A): A = x + y
}