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Motor Scooters Are Considered an Inferior Good

Question 82

Multiple Choice

Motor scooters are considered an inferior good. Incomes decline as the economy enters a recession. As a result, we expect the equilibrium price:


A) and quantity of motor scooters to increase.
B) and quantity of motor scooters to decrease.
C) to increase and quantity of motor scooters to decrease.
D) to decrease and quantity of motor scooters to increase.

Correct Answer:

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