Exhibit 5-9 Supply and demand curves for good X

-As shown in Exhibit 5-9, assuming good X is an inferior good, an increase in consumer income, other factors held constant, could move the equilibrium from point E to point:
A) A.
B) B.
C) C.
D) D.

Question

Exhibit 5-9 Supply and demand curves for good X
​ 
-As shown in Exhibit 5-9, assuming good X is an inferior good, an increase in consumer income, other factors held constant, could move the equilibrium from point E to point: ​
A) A. 
B) B. 
C) C. 
D) D.

Quizplus · Accepted Answer

For an inferior good, an increase in consumer income leads to a decrease in demand. Therefore, the equilibrium would move to a point with a lower quantity demanded, such as point A.

Exhibit 5-9 Supply and Demand Curves for Good X