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:
Verified
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