Suppose That the Incomes of Buyers in a Particular Market

question 218

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?

• A) The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
• B) The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous.
• C) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
• D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

---

Definitions:

Extrinsic Motivation

The drive to perform actions or engage in activities due to external rewards or pressures rather than for intrinsic satisfaction.

Intrinsic

Referring to motivation or behavior that is driven by internal rewards or satisfactions rather than external factors.

Great Pleasure

An intense feeling of deep satisfaction, joy, or delight.

Intrinsically Motivated

Refers to being motivated by internal factors, such as personal satisfaction or the joy of doing something, rather than by external rewards.