Assume that an inferior good is produced in a perfectly competitive,increasing-cost industry with external diseconomies.The market is initially in long-run equilibrium.After all long-run adjustments are made,which of the following would occur in this market as a result of an increase in consumers' incomes?
A) The market price would remain unchanged;the market quantity would rise.
B) The market price would rise;the market quantity would fall.
C) The market price would remain unchanged;the market quantity would fall.
D) Both the market price and the market quantity would fall.
E) Both the market price and the market quantity would rise.
Correct Answer:
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Q188: Q189: In a perfectly competitive market,an increase in Q190: In a perfectly competitive market,a decrease in Q191: Q192: The long-run supply curve is downward sloping Q194: In a constant-cost industry,the long-run market supply Q195: Assume that the producers of an input Q196: The long-run supply curve is upward sloping Q197: In a competitive market,a decrease in consumer Q198: In a competitive constant-cost industry,an increase in![]()
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