The Effect of an Increase in Consumer Income on Equilibrium

question 32

Multiple Choice

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is

• A)to increase equilibrium price and quantity
• B)to decrease equilibrium price and quantity
• C)to increase equilibrium price and decrease equilibrium quantity
• D)to increase equilibrium quantity and decrease equilibrium price
• E)that equilibrium price and quantity remain constant

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Definitions:

Synaptic Cleft

The narrow space between the terminal button of a neuron and the dendrite or cell body of another neuron where neurotransmitters are released.

Inhibitory Postsynaptic

Referring to a postsynaptic potential that makes a neuron less likely to generate an action potential, essentially serving to inhibit neuronal firing.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for receiving and transmitting information through electrical and chemical signals.

Action Potential

A rapid rise and subsequent fall in voltage or electrical charge across a cell's membrane, allowing neurons to transmit signals over distances.