Which of the Following Would Cause Both the Equilibrium Price

question 24

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of cotton (assume that cotton is a normal good) to increase?

• A)an increase in consumer income
• B)a drought that sharply reduces cotton output
• C)a decrease in consumer income
• D)unusually good weather that results in a bumper crop of cotton

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Definitions:

Sweatshop Labor

Work that is performed in poor conditions for low pay and often violates labor laws.

Working Conditions

The environment, terms, and circumstances under which an individual is employed, including hours, physical aspects, legal rights, and responsibilities.

Tariff of Abominations

The nickname given to the Tariff Act of 1828, which imposed high duties on imports and was highly controversial, particularly in the Southern United States, which felt it economically disadvantaged them.

Agricultural Economy

An economy that is largely dependent on agricultural production and the cultivation of crops and livestock.