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Which of the Following Raises the Equilibrium Price and Increases

Question 131

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?


A) An increase in the wage rate paid to used car salespeople
B) A fall in income if used cars are an inferior good
C) Neither A nor B because the question suggests a violation of the "law of demand."
D) Neither A nor B because the question suggests a violation of the "law of supply."

Correct Answer:

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