5. Suppose that the incomes of buyers in a particular market for a normal good increase and there is also a decrease in input prices to produce this good. 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.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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5. Suppose that the incomes of buyers in a particular market for a normal good increase and there is also a decrease in
input prices to produce this good. 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.
Transcribed Image Text:5. Suppose that the incomes of buyers in a particular market for a normal good increase and there is also a decrease in input prices to produce this good. 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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