The market for blue jeans is in equilibrium. Blue jeans are a normal good for consumers. If a recession reduces consumers' incomes at the same time that the price of denim (an input in the making of blue jeans) increases, we can say with certainty that as a result:a. the equilibrium price of blue jeans will decreaseb. the equilibrium price of blue jeans will increasec. the equilibrium quantity of blue jeans will increased. the equilibrium quantity of blue jeans will decrease

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Business

Jair Larson

23 July, 10:41

The market for blue jeans is in equilibrium. Blue jeans are a normal good for consumers. If a recession reduces consumers' incomes at the same time that the price of denim (an input in the making of blue jeans) increases, we can say with certainty that as a result:a. the equilibrium price of blue jeans will decreaseb. the equilibrium price of blue jeans will increasec. the equilibrium quantity of blue jeans will increased. the equilibrium quantity of blue jeans will decrease

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Answers (1)

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Bailey Zhang · Answer 1

the equilibrium quantity of blue jeans will decrease

Explanation:

Lower consumer income reduces demand, decreasing price and decreasing quantity. higher input price reduces supply, increasing price and decreasing quantity. So quantity definitely decreases.