Suppose that the incomes
of buyers in a particular market for a normal good decline and there
is also a reduction in input prices. What would we expect to occur in
this market? ( )
A．The
equilibrium price would increase, but the impact on the amount sold
in the market would be ambiguous.
B．The
equilibrium price would decrease, but the impact on the amount sold
in the market would be ambiguous.
C．Both
equilibrium price and equilibrium quantity would increase.
D．Equilibrium
quantity would increase, but the impact on equilibrium price would be
ambiguous.
