Multiple Choice
Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?
A) a fall in income if used cars are an inferior good
B) an increase in the wage rate paid to used car salespeople
C) Neither of the above because the question suggests a violation of the "law of demand."
D) Neither of the above because the question suggests a violation of the "law of supply."
Correct Answer:

Verified
Correct Answer:
Verified
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