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Which of the following would cause both the equilibrium price in the equilibrium quantity to decrease?An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase. A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.
Which of the following would cause both the equilibrium price and equilibrium quantity of an inferior good to increase?Answer and Explanation: The correct option is b. a decrease in consumer income. Two grade potatoes are an inferior good.
Which of the following would cause equilibrium quantity to fall?a. A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. 1. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.
Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes?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 decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
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