Suppose That the Incomes of Buyers in a Particular Market

question 87

Multiple Choice

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

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Definitions:

Strike-Slip Fault

A type of fault where rock masses slide horizontally past each other.

Underwater Landslide

A movement of rock, earth, or debris down a slope in an underwater environment, often triggered by earthquakes or other disturbances.

Tsunami

Ocean waves of exceptionally long lengths triggered by significant disturbances such as seismic activity, volcanic explosions, or submarine landslides.

Volcanic Eruption

The release of magma, gases, and ash from a volcano, which can form new landforms and impact climate.