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.
a. Quantity increases; Price may increase or decrease.
b. Price decreases; Quantity may increase or decrease.
c. Quantity decreases; Price may increase or decrease.
d. Price increases; Quantity increases.
e. Price decreases; Quantity may increase or decrease.
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. If 5 concerts are put on, then the
A) marginal external cost will be greater than the marginal social cost. B) marginal external cost will be greater than the marginal private cost. C) marginal external cost will equal the marginal private cost. D) marginal social cost will equal the marginal external cost. E) marginal external cost will equal zero.
Define the official settlements balance. Is there any difference between the United States and other countries in terms of what this balance measures? How does this affect the ability of the countries to run current account deficits?
What will be an ideal response?
The risk of a borrower defaulting on a loan is known as:
A. credit risk. B. default risk. C. loan risk. D. asset risk.
Which of the following reduced aggregate demand and thereby contributed to the crisis of 2008?
a. a rise in the value of the U.S. dollar b. falling housing and stock prices c. an increase in the real rate of interest d. optimism about future economic conditions