Using the above figure, suppose that roses are a normal good. If incomes decrease while simultaneously there is an increase in the price of the resources used to produce roses, then
A) the price will definitely increase above $25 per dozen roses.
B) the quantity will definitely decrease below 10 dozen roses.
C) the price will definitely decrease below $25 per dozen roses.
D) we cannot tell what will happen to equilibrium quantity.
Correct Answer:
Verified
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