All Else Constant, What Is the Ultimate Market Reaction of Suppliers

question 39

Multiple Choice

All else constant, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?

• A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve.
• B) The supply curve shifts to the right.
• C) The supply curve shifts to the left.
• D) Quantity supplied increases.

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