An Increase in Consumer Income Causes a Decrease in the Demand

Multiple Choice

An increase in consumer income causes a decrease in the demand for soft drinks (an inferior good here) , accompanied by an increase in the supply of soft drinks as a result of falling sweetener prices, will result in:

A) a decrease in the equilibrium quantity of soft drinks and no change in the equilibrium price.
B) a decrease in the equilibrium price of soft drinks and no change in the equilibrium quantity.
C) a decrease in the equilibrium price of soft drinks; the equilibrium quantity may increase or decrease.
D) an increase in the equilibrium quantity of soft drinks; the equilibrium price may increase or decrease.