Essay
In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good.
a.The population increases and productivity increases.
b.Income increases and the price of inputs decrease.
c.The number of firms in the market decreases and income increases.
d.Consumer preference increases and the price of a complement decreases.
e.The price of a substitute in consumption decreases and the price of a substitute in production decreases.
Correct Answer:
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a.Quantity increases; Price may increase...View Answer
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Correct Answer:
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