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

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Definitions:

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Facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

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An unfamiliar or novel set of circumstances that requires adaptation and may trigger learning or behavioral changes.

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The concept of general intelligence, suggesting a single, overarching measure of cognitive ability that influences performance on various tasks.

Intelligence

The ability to learn, understand, and apply knowledge, to solve problems, and adapt to new situations.