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:

Discharging

The act of releasing someone from an obligation, such as a debt, duty, or legal liability, often through the payment or fulfillment of what is owed.

Purchase Agreement

A legal document outlining the terms and conditions under which a sale of property will take place.

Parcel

A parcel refers to a package or piece of land, especially one that is part of a larger area or to be used for a specific purpose.