With a Downsloping Demand Curve and an Upsloping Supply Curve

question 150

Multiple Choice

With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will

• A) increase equilibrium price and quantity if the product is a normal good.
• B) decrease equilibrium price and quantity if the product is a normal good.
• C) have no effect on equilibrium price and quantity.
• D) reduce the quantity demanded but not shift the demand curve.

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Definitions:

Reciprocity

A mutual exchange of privileges or interactions between parties, often seen as a foundational principle in social relationships.

Dispositional Attributions

The tendency to attribute someone's behavior to their personal characteristics, rather than to situational factors.

Championing

Actively supporting or defending a cause, idea, or person.

Propinquity

The physical or psychological proximity between people, which can influence attraction and relationship formation.