If rice is an inferior good, when incomes rise, the equilibrium price will _____, and the equilibrium quantity will _____.

Name: If rice is an inferior good, when incomes rise, the equilibrium price will _____, and the equilibrium quantity will _____.
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Question

Quizplus · Accepted Answer

When incomes rise, the demand for an inferior good like rice decreases because people can afford to buy more desirable substitutes. This decrease in demand leads to a lower equilibrium price and quantity.

If Rice Is an Inferior Good, When Incomes Rise, the Equilibrium