What is the effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) ?
A) to increase equilibrium price and quantity
B) to decrease equilibrium price and quantity
C) to increase equilibrium price and decrease equilibrium quantity
D) to increase equilibrium quantity and decrease equilibrium price
Correct Answer:
Verified
Q116: Given a market system, in which of
Q117: Exhibit 4-6 Q118: When does a surplus occur? Q119: Suppose a surplus exists in the market Q120: Which statement reflects the results of high Q122: Suppose people believe that prices are going Q123: What will an increase in demand cause? Q124: Saccharin and aspartame are both low-calorie substitutes Q125: What will a decrease in demand cause? Q126: Exhibit 4-2
A) when current
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