Suppose that in the market for good X (an inferior good), the following occur simultaneously: (i) consumer incomes increase and (ii) the marginal cost of producing good X increases. Which of the following statements is TRUE?

Question options:

1.The equilibrium quantity of X could either increase or decrease, but equilibrium price will definitely decrease.

2.The equilibrium price of X could either increase or decrease, but equilibrium quantity will definitely increase.

3.The equilibrium quantity of X could either increase or decrease, but equilibrium price will definitely increase.

4.The equilibrium price of X could either increase or decrease, but equilibrium quantity will definitely decrease.