Which of the Following Would Cause Both the Equilibrium Price

question 24

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good) to increase?

• A)an increase in consumer income
• B)a drought that sharply reduces cotton output
• C)a decrease in consumer income
• D)unusually good weather that results in a bumper crop of cotton

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Definitions:

Particular Purpose

A specific intent or use for which a product or service is bought, indicating reliance on the seller's advice or expertise.

Implied Warranties

Legal guarantees assumed in transactions, such as the assurance that a product will perform as advertised or is fit for its intended use.

Operation Of Law

Changes in legal status or rights due to the application of law, rather than as a result of an agreement or court order.

Flower Pots

Containers used for planting, growing, and displaying flowers and other plants, made from various materials.