Suppose Consumer Income Increases

question 150

Multiple Choice

Suppose consumer income increases.If wine is a normal good, what will happen to the equilibrium price and producer surplus?

• A)both the equilibrium price and the producer surplus will decrease
• B)both the equilibrium price and the producer surplus will increase
• C)the equilibrium price will decrease and the producer surplus will increase
• D)the equilibrium price will increase and the producer surplus will decrease

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