As consumer incomes rise when the economy recovers after a recession, what happens in the market for normal goods, such as restaurant meals? O a. Equilibrium price rises and equilibrium quantity falls O b. Equilibrium price falls and equilibrium quantity rises O c. Equilibrium price and equilibrium quantity both fall O d. Equilibrium price and equilibrium quantity both rise You observe that the price of coffee has increased, yet evidence suggests demand for coffee has been stable; you surmise a possible explanation is that: O a. wages of workers in coffee production might have increased. O b. coffee production technology has improved. O c. wages of workers in coffee production might have decreased. O d. there has been no change in the supply of coffee. Which of the following is a question that might be answered by normative economics? O a. What will happen to GDP if we raise income taxes? O b. Do sales taxes or income taxes generate more revenue? O c. Should we raise sales taxes or income taxes? O d. What will happen to the unemployment rate if we raise sales taxes? $21 A $12 B C Q 50 In the diagram above, there is _ of wasted resources at the market equilibrium. O a. $825 O b. $350 O c. $250 O d. $0P S $21 A $12 B $.2 C D Q 50 In the diagram above, at the market equilibrium, area B represents: Q a. producer surplus. O b. consumer surplus. O c. total cost to sellers. O d. total value to buyers