Suppose the Incomes of Buyers in a Market for a Particular

question 88

Multiple Choice

Suppose the incomes of buyers in a market for a particular normal good decrease 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:

Stocks

Shares of ownership in a company that represent a claim on the company's earnings and assets, which can be bought and sold in the stock market.

Bonds

The connections with family, friends, and others who have a similar cultural background or ethnicity.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Net Worth

The total value of an individual's or entity's assets minus liabilities, indicating financial health or status.