question archive If the income of buyers decreases and good A is an inferior good, the _____(a)_____ will _____(b)_____
If the income of buyers decreases and good A is an inferior good, the _____(a)_____ will _____(b)_____
Subject:MarketingPrice:2.88 Bought3
If the income of buyers decreases and good A is an inferior good, the _____(a)_____ will _____(b)_____. This will cause the equilibrium price to _____(c)_____ and the equilibrium quantity to _____(d)_____.
(a) demand for good A/quantity demanded of good A
(b) increase/decrease
(c) increase/be indeterminate/decrease
(d) increase/be indeterminate/decrease
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If buyers' income decreases and good A is an inferior good, the demand for good A will decrease. This will cause the equilibrium price to decrease and the equilibrium quantity to decrease.
With a rise in consumers' general income, the demand for normal goods will increase at each cost level. In contrast, the demand for an inferior good in the same situation will decrease.
When the demand for an inferior good falls, its equilibrium price is bound to fall hence a decrease in its equilibrium quantity.
