In the following question 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.
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 (since people turn to cheaper alternatives), which in turn increases both the equilibrium price and quantity of the product.

In the Following Question You Are Asked to Determine, Other