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:

Plant Asset

Long-term tangible assets used in the operation of a business and not intended for resale.

Current Liabilities

Liabilities that will be due within a short time (usually one year or less) and that are to be paid out of current assets.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or during the business's operating cycle, whichever is longer.

Current Assets

Assets that a company expects to convert into cash or use up within one year or the operating cycle, whichever is longer.