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

Question

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

If You Produce an Inferior Good and Consumers' Incomes Are