Steak and (Potatoes or Carrots) are typically paired for a meal as complements. Potatoes are a normal good. Carrots are an inferior good. Potatoes and Carrots are substitutes. Use this information to answer the following question: What will happen to the equilibrium price and quantity of carrots if consumer disposable income falls? A. Price will decrease, Quantity will decrease B. Price will decrease, Quantity will increase C. Price will increase, Quantity will decrease D. Price will increase, Quantity will increase
Steak and (Potatoes or Carrots) are typically paired for a meal as complements. Potatoes are a normal good. Carrots are an inferior good. Potatoes and Carrots are substitutes. Use this information to answer the following question: What will happen to the equilibrium price and quantity of carrots if consumer disposable income falls? A. Price will decrease, Quantity will decrease B. Price will decrease, Quantity will increase C. Price will increase, Quantity will decrease D. Price will increase, Quantity will increase
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Steak and (Potatoes or Carrots) are typically paired for a meal as complements. Potatoes are a normal good. Carrots are an inferior good. Potatoes and Carrots are substitutes. Use this information to answer the following question: What will happen to the
A. Price will decrease, Quantity will decrease
B. Price will decrease, Quantity will increase
C. Price will increase, Quantity will decrease
D. Price will increase, Quantity will increase
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