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The Effect of an Increase in Consumer Income on Equilibrium

Question 32

Multiple Choice

The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is


A) to increase equilibrium price and quantity
B) to decrease equilibrium price and quantity
C) to increase equilibrium price and decrease equilibrium quantity
D) to increase equilibrium quantity and decrease equilibrium price
E) that equilibrium price and quantity remain constant

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