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Suppose that the incomes of buyers in a particular market for a normal good decrease and there is also an increase in input prices. What
Suppose that the incomes of buyers in a particular market for a normal good decrease and there is also an increase 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. | Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous. |
d. | Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. |
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