Suppose that ice cream is a normal good and buyers receive less income. At the same time, however, the number of ice cream sellers increase. The equilibrium price and the equilibrium quantity

The question is asking about the effects of changes in income and the number of sellers on the equilibrium price and quantity of a normal good, in this case, ice cream.

1. Decrease in Income: If ice cream is a normal good, then a decrease in income will decrease the demand for ice cream. This is because normal goods are those goods for which demand increases with an increase in income and vice versa. So, when income decreases, consumers will buy less ice cream, shifting the demand curve to the left.

2. Increase in Number of Sellers: An increase in the number of ice cream sellers will increase the supply of ice cream. This means that more ice cream is available in the market, which shifts the supply curve to the right.

Now, let's consider the combined effect on equilibrium price and quantity:

1. Equilibrium Price: The decrease in demand (due to decrease in income) puts a downward pressure on the price. On the other hand, the increase in supply (due to increase in number of sellers) also puts a downward pressure on the price. Therefore, the equilibrium price of ice cream will decrease.

2. Equilibrium Quantity: The decrease in demand (due to decrease in income) puts a downward pressure on the quantity. However, the increase in supply (due to increase in number of sellers) puts an upward pressure on the quantity. The net effect on equilibrium quantity is ambiguous without more information. It will depend on the relative magnitudes of the decrease in demand and the increase in supply. If the decrease in demand is larger than the increase in supply, the equilibrium quantity will decrease, and vice versa.