Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good)to decrease?
A)An increase in consumer income.
B)A freeze that sharply reduces potato output.
C)A decrease in consumer income.
D)A technological advancement that results in a bumper crop of potatoes.

Question

Quizplus · Accepted Answer

An increase in consumer income would decrease the demand for an inferior good like potatoes, leading to a decrease in both equilibrium price and quantity.

Which of the Following Would Cause Both the Equilibrium Price