Suppose That the Incomes of Buyers in a Particular Market

question 87

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good increase and there is also an increase 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 increase, but the impact on equilibrium price would be ambiguous.
• D) Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.

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Definitions:

Prokaryotic DNA

The genetic material found in prokaryotes (bacteria and archaea) that is typically circular and located in the cytoplasm.

Silencer

A regulatory DNA sequence that can bind repressor proteins to inhibit the expression of a gene.

Insulator

A material that resists the flow of electric charge, used in various applications to protect against electric shock or retain heat.

Transcription Factor

Regulatory protein that influences transcription by binding directly to DNA; e.g., an activator or repressor.