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