What Is the Effect of an Increase in Consumer Income

question 124

Multiple Choice

What is the effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) ?  

• A) to increase equilibrium price and quantity 
• B) to decrease equilibrium price and quantity 
• C) to increase equilibrium price and decrease equilibrium quantity 
• D) to increase equilibrium quantity and decrease equilibrium price

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Definitions:

Functional Departmentalization

The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.