What Happens to Consumer Surplus in the IPod Market If

question 40

Multiple Choice

What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an increase in income?

• A)Consumer surplus decreases.
• B)Consumer surplus remains unchanged.
• C)Consumer surplus increases.
• D)Consumer surplus may increase, decrease, or remain unchanged.

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Definitions:

Society

A community of people living together in an ordered community, sharing customs, laws, and organization.

Mandated Boundaries

Limits or restrictions imposed by legal or regulatory authorities that dictate acceptable behavior or activity.

Legal System

The comprehensive set of rules and principles, institutions, and processes established by a government or society to enforce laws, provide justice, and regulate conduct within a country or community.

Conduct

How an individual acts, particularly in a professional or public setting.