What would happen to the equilibrium price and quantity of Apples if consumers incomes rise and Apples are an inferior good? A.Both the equilibrium price and quantity would increase. B.Both the equilibrium price and quantity would decrease. C.The equilibrium price would decrease, and the equilibrium quantity would increase. D.The equilibrium price would increase, and the equilibrium quantity would decrease.
What would happen to the equilibrium price and quantity of Apples if consumers incomes rise and Apples are an inferior good? A.Both the equilibrium price and quantity would increase. B.Both the equilibrium price and quantity would decrease. C.The equilibrium price would decrease, and the equilibrium quantity would increase. D.The equilibrium price would increase, and the equilibrium quantity would decrease.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What would happen to the equilibrium price and quantity of Apples if consumers incomes rise and Apples are an inferior good?
A.Both the equilibrium price and quantity would increase.
B.Both the equilibrium price and quantity would decrease.
C.The equilibrium price would decrease, and the equilibrium quantity would increase.
D.The equilibrium price would increase, and the equilibrium quantity would decrease.
Expert Solution
Step 1
An inferior good refers to a type of good for which demand decreases when consumer income increases. In other words, an inferior good is a good that consumers tend to purchase less of as their income increases, while they tend to purchase more of it when their income decreases.
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