The figure illustrates the demand for and supply for jeans. ...

[kodithompson]

The figure illustrates the demand for and supply for jeans. Suppose jeans are a normal good and people's incomes increase.
 
  At the initial price of 50 for a pair of jeans, after the increase in income the quantity demanded is ________ than the equilibrium quantity and there is a ________ of jeans. A) greater; surplus
  B) greater; shortage
  C) less; surplus
  D) less; shortage

Question 2

A firm with a fixed cost of 300 every month and variable cost of 200 every month decides to shut down. In such a situation it would lose:
 
  A) 200 every month.
  B) 300 every month.
  C) 500 every month.
  D) 0 every month.

[prumorgan]

Answer to Question 1

D

Answer to Question 2

B

[kodithompson]

Thanks for the timely response, appreciate it

[mochi09]

Gracias!