What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an increase in income?
a. Consumer surplus decreases.
b. Consumer surplus remains unchanged.
c. Consumer surplus increases.
d. Consumer surplus may increase, decrease, or remain unchanged.
d
Economics
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Explain in detail what effect a Fed sale of bonds will have on: (1 ) the LM curve; and (2 ) the IS curve
What will be an ideal response?
Economics
Refer to Figure 15.6. Which of the following Fed actions is most likely to decrease the aggregate demand curve from AD2 to AD1?
A. Lowering the discount rate. B. Buying bonds in the open market. C. Raising the federal funds rate. D. Decreasing the reserve requirement.
Economics