Asked by
Lauren Ashley
on Nov 17, 2024
Verified
Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?
A) An increase in consumer income
B) A decrease in consumer income
C) Greater government restrictions on agricultural chemicals
D) Fewer government restrictions on agricultural chemicals
Inferior Good
An economic term for a good whose demand decreases as the consumer's income increases, contrasting with normal goods.
Equilibrium Quantity
The quantity of goods or services supplied that is equal to the quantity demanded at the market price.
- Identify the factors that cause shifts in demand and supply curves leading to changes in equilibrium.
- Determine the consequences of changes in consumer income on inferior and normal goods.
Verified Answer
BR
Learning Objectives
- Identify the factors that cause shifts in demand and supply curves leading to changes in equilibrium.
- Determine the consequences of changes in consumer income on inferior and normal goods.