Suppose the incomes of buyers in a market for a particular 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 price would increase, but the impact on equilibrium quantity would be ambiguous. O b. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

MACROECONOMICS
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Chapter4: Supply And Demand: An Initial Look
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Suppose the incomes of buyers in a market for a particular 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 price would increase, but the impact on equilibrium quantity would be ambiguous.
Ob Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
O c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
O e. Equilibrium price increases and equilibrium quantity decreases
Transcribed Image Text:Suppose the incomes of buyers in a market for a particular 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 price would increase, but the impact on equilibrium quantity would be ambiguous. Ob Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. O c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. O d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. O e. Equilibrium price increases and equilibrium quantity decreases
Tastee Patties has recently acquired the new "Quick-bake"oven which bakes patties twice as fast as before.
What changes can we expect on the market diagram for patties?
Select one:
O a Arightward shift of the supply curve
O b. A movement to the right along the supply curve.
Oc. A movement to the left along the demand curve.
d.
A movement to the right along the demand curve.
O.e
e. Arightward shift of the demand curve.
Transcribed Image Text:Tastee Patties has recently acquired the new "Quick-bake"oven which bakes patties twice as fast as before. What changes can we expect on the market diagram for patties? Select one: O a Arightward shift of the supply curve O b. A movement to the right along the supply curve. Oc. A movement to the left along the demand curve. d. A movement to the right along the demand curve. O.e e. Arightward shift of the demand curve.
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