In a competitive constant-cost industry, an increase in consumer demand leads to

Which statement best characterizes the long-run decline in the agricultural industry?

A. The growth in the demand for farm products has exceeded the growth in the supply of such products, causing rising farm product prices and falling farm income B. The growth in the supply of farm products has exceeded the growth in the demand for such products, causing falling farm product prices and falling farm income C. The supply of farm products has increased while the demand for such products has decreased, causing falling farm product prices and falling farm income D. The demand for farm products has increased while the supply of such products has decreased, causing rising farm product prices and rising farm income

Assuming that charitable giving is a normal good, the income effect of a decrease in personal tax rates would lead to

A. more giving because households would have more disposable income. B. more giving because giving to charity would become less expensive relative to other goods. C. less giving because giving to charity would become more expensive relative to other goods. D. less giving because households would spend that money on luxury goods.