In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1)the demand (D)for,or supply (S)of,X; (2)the equilibrium price (P)of X;and (3)the equilibrium quantity (Q)of X. Refer to the given information.If X is an inferior good,a decrease in income will:

Question

Quizplus · Accepted Answer

For an inferior good, a decrease in income leads to an increase in demand (D) because consumers turn to less expensive alternatives. This increased demand, with supply remaining constant, results in a higher equilibrium price (P) and a higher equilibrium quantity (Q) sold.

In the Following Question You Are Asked to Determine,other Things