Suppose Consumer Income Increases

question 150

Multiple Choice

Suppose consumer income increases.If wine is a normal good, what will happen to the equilibrium price and producer surplus?

• A)both the equilibrium price and the producer surplus will decrease
• B)both the equilibrium price and the producer surplus will increase
• C)the equilibrium price will decrease and the producer surplus will increase
• D)the equilibrium price will increase and the producer surplus will decrease

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Definitions:

Piaget's Concept

Piaget's Concept refers to the developmental theory formulated by Jean Piaget, positing that children move through four stages of cognitive development as they actively construct their understanding of the world.

Deferred Imitation

The ability to repeat or mimic an action or behavior after a delay, demonstrating memory and cognitive development.

Cognitive Development

Cognitive Development is the process by which individuals acquire and evolve in their problem-solving abilities, memory, conceptual understanding, and information processing skills throughout their lifespan.

Sensorimotor Period

A stage in early child development (from birth to about 2 years old) where learning occurs through sensory experiences and manipulating objects.