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Which of the Following Raises the Equilibrium Price and Increases

Question 22

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?


A) A fall in income if used cars are an inferior good
B) An increase in the wage rate paid to used car salespeople
C) Neither A nor B because the question suggests a violation of the "law of demand."
D) Neither A nor B because the question suggests a violation of the "law of supply."

Correct Answer:

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