Suppose That the Incomes of Buyers in a Particular Market

question 18

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good decline and there is also a reduction in input prices.What would we expect to occur in this market?

• A)the equilibrium price would increase but the impact on the amount sold in the market would be ambiguous
• B)the equilibrium price would decrease but the impact on the amount sold in the market would be ambiguous
• C)both equilibrium price and equilibrium quantity would increase
• D)equilibrium quantity would increase but the impact on equilibrium price would be ambiguous

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Definitions:

External Locus of Control

The belief that one's success or failure results from external forces beyond one's control.

Internal Locus of Control

The belief that one can control their own destiny and that outcomes are the result of individual actions rather than external forces.

Bandura's Theory

Developed by Albert Bandura, this theory emphasizes the importance of observational learning, imitation, and modeling in behavior.

Type A

A personality typology characterized by competitiveness, urgency, and aggression, often associated with a higher risk of stress-related illnesses.