Suppose That the Incomes of Buyers in a Particular Market

question 45

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good increase 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) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
• D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

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Definitions:

Incarcerated

Refers to being confined in a prison or jail.

Substance Abusers

Individuals who misuse drugs, alcohol, or other substances leading to health issues or negative impacts on social, professional, and personal life.

Mentally Ill

A term referring to individuals facing challenges with their mental health, affecting their day-to-day functioning.

Mentally Challenged

A term that refers to individuals who experience limitations in cognitive functioning and other mental capabilities.