Suppose a Fall in Consumer Income Drives Down the Demand

question 106

Multiple Choice

Suppose a fall in consumer income drives down the demand for lobster while a record harvest increases supply. How would these changes affect the equilibrium price and quantity of lobsters?

• A) Both equilibrium price and equilibrium quantity would decrease.
• B) The equilibrium price would fall, but the effect on the equilibrium quantity cannot be predicted.
• C) The equilibrium price would fall and the equilibrium quantity would increase.
• D) The equilibrium quantity would increase, but the effect on price cannot be predicted.

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Definitions:

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to the buildup of plaque in the coronary arteries, leading to angina and heart attacks.

Heart Disease

A range of conditions that affect the heart, including blood vessel diseases, heart rhythm issues (arrhythmias), and heart defects.

Time-Conscious

Awareness and consideration of the passage of time, often leading to efficient management and organization of activities.

Tissue Inflammation

The body's response to injury or infection, characterized by redness, heat, swelling, and pain in the affected tissues.