Suppose that Joan, the only consumer of pork, has a downward-sloping demand curve for pork and faces an upward-sloping supply curve. If her demand curve shifts out because she develops a craving for pork, then at the new equilibrium (everything else equal),
A. the price of pork relative to other goods will be higher than before.
B. Joan’s marginal utility from every unit of pork she eats will be higher than before.
C. Joan’s real income will be lower than before.
D. All of the responses are correct.
Answer: D
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