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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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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