Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good)to increase?
A)an increase in consumer income
B)a drought that sharply reduces barley output
C)a decrease in consumer income
D)unusually good weather that results in a bumper crop of barley

Question

Quizplus · Accepted Answer

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

Which of the Following Would Cause Both the Equilibrium Price