Beans are an inferior good and meat is a normal good. A new wage agreement for workers increases the

Beans are an inferior good and meat is a normal good. A new wage agreement for workers
increases the income of many consumers. Given this information and holding everything else
constant, how will the equilibrium prices and equilibrium quantities of both goods change
relative to their initial levels?

a) The equilibrium price and the equilibrium quantity of beans will decrease; the equilibrium
price and the equilibrium quantity of meat will increase.
b) The equilibrium price and the equilibrium quantity of both goods will increase.
c) The equilibrium price and the equilibrium quantity of both goods will decrease.
d) The equilibrium price and the equilibrium quantity of beans will increase; the equilibrium
price and the equilibrium quantity of meat will decrease.

Economics 102 midterm fall2017