Given a Supply Curve That Is Positively Sloped and a Demand

question 58

Multiple Choice

Given a supply curve that is positively sloped and a demand curve for a normal good that is negatively sloped, an increase in income will most likely result in:

• A) an increase in price and quantity.
• B) a decrease in price and an increase in quantity.
• C) a decrease in both price and quantity.
• D) an increase in price and a decrease in quantity.

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Definitions:

Municipal Ordinance

Laws or regulations passed by municipal governments to govern matters within their jurisdiction.

Statute

A written law passed by a legislative body at the federal or state level that governs and dictates actions.

Normandy

A geographic region in France, known for its historical events, especially the D-Day invasion during World War II.

Natural Law

A theory asserting that certain rights or values are inherent by virtue of human nature and universally cognizable through human reason.