**Transcription for Educational Website:**---**Scenario: Market Adjustment with Income and Input Price Changes**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:**- **a.** Equilibrium quantity would decrease, but the impact on equilibrium price 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.** The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.**Options Available:**- Cross out: [Option A] [Option B] [Option C] [Option D]---Note: This section presents a multiple-choice question regarding economic theory, specifically concerning how changes in consumer income and input costs affect market equilibrium in terms of quantity and price.

Correct answer is option B the equilibrium price would decrease, but the impact on the amount sold…

Answered: Suppose that the incomes of buyers in a…

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Chapter1: Making Economics Decisions

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**Transcription for Educational Website:**

---

**Scenario: Market Adjustment with Income and Input Price Changes**

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:**

- **a.** Equilibrium quantity would decrease, but the impact on equilibrium price 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.** The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous.

**Options Available:**

- Cross out: [Option A] [Option B] [Option C] [Option D]

---

Note: This section presents a multiple-choice question regarding economic theory, specifically concerning how changes in consumer income and input costs affect market equilibrium in terms of quantity and price.

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