Which of the following occurs simultaneously with an income effect?

In a Cournot equilibrium, each firm chooses an output level which:

a. maximizes joint profits. b. maximizes the price received. c. maximizes profits given what the other firms produce. d. maximizes revenue given what the other firms produce.

Figure 5-16 Figure 5-16 shows Adam’s purchases of bananas and apples when apples cost $5 each and bananas $4 each. The information implies that Adam’s income

A. must be $9. B. must be $20. C. must be $40. D. cannot be determined without further information.