Suppose that the incomes of buyers in a particular market for a normal

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter4: Supply And Demand: An Initial Look
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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?
Select one:
O a. Equilibrium quantity would decrease, but the impact on equilibrium price
would be ambiguous.
cross out
O b. The equilibrium price would decrease, but the impact on the amount sold
in the market would be ambiguous.
cross out
cross out
O c. Equilibrium quantity would increase, but the impact on equilibrium price
would be ambiguous.
cross out
O d. The equilibrium price would increase, but the impact on the amount sold
in the market would be ambiguous.
Transcribed Image Text: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? Select one: O a. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. cross out O b. The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. cross out cross out O c. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. cross out O d. The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.
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