Suppose Rice Is a Normal Good

Multiple Choice

Suppose rice is a normal good. If consumers' incomes fall, and a new technology is introduced that lowers the marginal cost of producing rice, then the equilibrium:

A) price of rice will increase, but we cannot say for sure what will happen to the equilibrium quantity.
B) price of rice will fall, but we cannot say for sure what will happen to the equilibrium quantity.
C) quantity of rice will increase, but we cannot say for sure what will happen to the equilibrium price.
D) quantity of rice will decrease, but we cannot say for sure what will happen to the equilibrium price.