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Suppose That IPhones Are Normal Goods

Question 278

Multiple Choice

Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones


A) both equilibrium price and quantity will fall.
B) both equilibrium price and quantity will increase.
C) equilibrium price will increase and quantity will decrease.
D) equilibrium price will fall but quantity will increase.

Correct Answer:

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