You are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X, (2)the equilibrium price (P)of X and (3)the equilibrium quantity (Q)of X.
-Refer to the above.If X is an inferior good,a decrease in income will:

Question

Quizplus · Accepted Answer

For an inferior good, a decrease in income leads to an increase in demand because consumers will buy more of the cheaper alternative. This increase in demand will lead to an increase in both the equilibrium price and quantity of product X.

You Are Asked to Determine,other Things Equal,the Effects of a Given