Exhibit 3-2

Good X

Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?
A)There was an increase in resource prices and income stayed constant.
B)There was a decrease in resource prices and income stayed constant.
C)There was an increase in resource prices and income decreased.
D)There was a decrease in resource prices and income increased.

Question

Exhibit 3-2

Good X
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Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?
A)There was an increase in resource prices and income stayed constant. 
B)There was a decrease in resource prices and income stayed constant. 
C)There was an increase in resource prices and income decreased. 
D)There was a decrease in resource prices and income increased.

Quizplus · Accepted Answer

The Answer of Exhibit 3-2

Good X
​
​
Refer to Exhibit 3-2. Suppose equilibrium is at point C. Something then changes and equilibrium becomes point B. Which of the following is consistent with the change in equilibrium from point C to B (assuming that good X is a normal good)?
A)There was an increase in resource prices and income stayed constant. 
B)There was a decrease in resource prices and income stayed constant. 
C)There was an increase in resource prices and income decreased. 
D)There was a decrease in resource prices and income increased.