Question

Suppose the price of milk increases and at the same time, the incomes of cheese buyers...

Suppose the price of milk increases and at the same time, the incomes of cheese buyers decrease. Milk is an input in the production of cheese. In addition, we also know that cheese is a normal good. As a result, in the market for cheese

Group of answer choices

1.the equilibrium quantity rises and the equilibrium price may increase, decrease, or stay the same.

2.the equilibrium price rises and the equilibrium quantity may increase, decrease, or stay the same.

3.the equilibrium price declines and the equilibrium quantity may increase, decrease, or stay the same.

4.the equilibrium quantity declines and the equilibrium price may increase, decrease, or stay the same.

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