56. Which statement is not correct? A) If demand increases and supply decreases, price will rise and the quantity exchanged may either rise or fall. B) If supply increases and demand decreases, price will fall and the quantity exchanged may either rise or fall. C) If supply declines and demand remains constant, price will rise and the quantity exchanged will fall. D) If demand decreases and supply increases, price will fall and the quantity exchanged will fall. E) None of the above statements are correct. 57. Students at Informed University pay $40 per year for a parking permit but many complain that they are unable to find a parking place in University lots. In terms of equilibrium, this suggests that: A) student incomes are too low. B) parking permits are underpriced. C) parking permits are overpriced. D) the University should make parking free. E) Both A and C are correct. 58. Which of the following statements is correct? A) An increase in the price of C will decrease the demand for complementary product D. B) C) D) E) A decrease in income will decrease the demand for an inferior good. An increase in income will reduce the demand for a normal good. A decline in the price of X will increase the demand for substitute product X. Both C and D are correct. 59. A consumer's weekly income is $300 and the consumer buys 5 bars of chocolate per week. When income increases to $330, the consumer buys 6 bars per week. The income elasticity of demand for chocolate by this consumer is about: A) B) C) D) E) 1. 2. 1.5. 0 .5