If You Produce a Normal Good and Consumers' Incomes Are

question 99

Multiple Choice

If you produce a normal good and consumers' incomes are expected to decrease, you should anticipate a________ price for your product than the current equilibrium price and a ________equilibrium quantity than the current equilibrium quantity.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

---

Definitions:

Farm Household

A household that is involved in agricultural activities, often residing on a farm where both living and farming activities take place.

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.