What Happens to Consumer Surplus in the IPod Market If

question 40

Multiple Choice

What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an increase in income?

• A)Consumer surplus decreases.
• B)Consumer surplus remains unchanged.
• C)Consumer surplus increases.
• D)Consumer surplus may increase, decrease, or remain unchanged.

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Definitions:

Contiguity

A principle of learning based on the idea that events occurring together in time or space are readily associated with each other.

Ossicles

The three small bones in the middle ear (the malleus, incus, and stapes) that transmit sound vibrations from the eardrum to the inner ear.

Latin Names

The system of naming living organisms and diseases with Latin or Latinized words, used for scientific classification in taxonomy and medicine.

Sensory Adaptation

The process by which sensitivity to stimuli decreases over time as one is exposed to constant levels of that stimuli.