In the Following Question You Are Asked to Determine,other Things

question 142

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. An increase in income,if X is a normal good,will:

• A) increase D,increase P,and increase Q.
• B) increase D,increase P,and decrease Q.
• C) increase S,increase P,and increase Q.
• D) decrease D,increase P,and increase Q.

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Definitions:

Consumption

The process of utilizing products and services to fulfill necessities and desires.

Budget Equation

A financial formula that equates an individual's or entity's income to their total expenses.

Leisure

Free time spent away from business, work, and domestic chores, often dedicated to relaxation, hobbies, or enjoyment.

Nonlabor Income

Refers to earnings that do not come from employment or work performed but from other sources such as investments, pensions, or inheritance.