If you produce an inferior good and consumers' incomes are expected to increase, you should anticipate a ________price for your product than the current equilibrium price and a ________equilibrium quantity than the current equilibrium quantity.

Question

Quizplus · Accepted Answer

Inferior goods are those for which demand decreases as consumer income increases. Therefore, if consumers' incomes are expected to increase, demand for an inferior good would decrease, leading to a lower equilibrium price and a lower equilibrium quantity.

If You Produce an Inferior Good and Consumers' Incomes Are