Use the Information Below to Answer the Following Questions

question 116

Multiple Choice

Use the information below to answer the following questions.
Fact 3.5.1
The market for coffee is initially in equilibrium.Pepsi is a substitute for coffee;cream is a complement of coffee.Consider the market for coffee.Assume that all ceteris paribus assumptions continue to hold except for the event listed.
-Refer to Fact 3.5.1.If coffee is a normal good,then a decrease in income will

• A)increase the price and the quantity demanded of coffee.
• B)increase the price and the quantity supplied of coffee.
• C)decrease the price and the quantity demanded of coffee.
• D)decrease the price and the quantity supplied of coffee.
• E)have no effect on the market for coffee.

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Definitions:

A Priori Guidelines

Principles or rules that are derived through logic or reason, rather than from empirical observation.

Ethical Judgments

Decisions or conclusions about the morality of actions, behaviors, or situations, based on a set of moral principles or a moral philosophy.

Dependable

Reliable or trustworthy; capable of being counted on to fulfill promises, duties, or expectations.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.