Suppose That the Incomes of Buyers in a Particular Market

question 218

Multiple Choice

Suppose that the incomes of buyers in a particular market for a 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) 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.

---

Definitions:

Manipulate Objects

The action of handling, controlling, or applying physical operations to objects, exploring their characteristics and the effects of interactions.

Capability

The quality or ability of having the potential or capacity to achieve or accomplish something.

Taste and Smell

Sensory systems responsible for detecting flavors and scents, playing a critical role in human perception and experience.

Vision

Vision refers to the ability to see, the act of envisioning future possibilities, or a mental image of what the future could or should be like.