Suppose That the Incomes of Buyers in a Particular Market

question 178

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good increases, and suppose there is also a reduction in input prices.What would be expected to occur in this market?  

• A) The equilibrium price would increase, but the impact on the amount sold would be ambiguous. 
• B) The equilibrium price would decrease, but the impact on the amount sold would be ambiguous. 
• C) The equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. 
• D) The equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.

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