The Effect of an Increase in Consumer Income on Equilibrium

question 32

Multiple Choice

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is

• A)to increase equilibrium price and quantity
• B)to decrease equilibrium price and quantity
• C)to increase equilibrium price and decrease equilibrium quantity
• D)to increase equilibrium quantity and decrease equilibrium price
• E)that equilibrium price and quantity remain constant

---

Definitions:

Heterosexual

A term describing individuals who are romantically or sexually attracted to people of the opposite gender.

Cognition

The procedure of acquiring comprehension and insights by thinking, experiencing events, and sensory observation.

Top-Down Processing

An approach to processing information that starts with the brain's higher-level cognitive processes before receiving specific data from the senses.

Bottom-Up Processing

Analysis that begins with the sensory receptors and works up to the brain’s integration of sensory information.