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Suppose Income Increases. Choose the Correct Statement

Question 38

Multiple Choice

Suppose income increases. Choose the correct statement.


A) The equilibrium price of turnips falls if a turnip is an inferior good.
B) The equilibrium price of turnips rises if a turnip is an inferior good.
C) The equilibrium quantity of turnips decreases if a turnip is an inferior good.
D) The supply of turnips decreases whether or not a turnip is an inferior good.
E) Both A and C

Correct Answer:

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