Suppose That the Incomes of Buyers in a Particular Market

Multiple Choice

Suppose that the incomes of buyers in a particular market for a normal good increase and there is also a reduction 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) Both equilibrium price and equilibrium quantity would increase.
D) Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.