Exhibit 3-5 D, Quantity Refer to Exhibit 3-5. In the market shown, if equilibriu

Question

Exhibit 3-5 D, Quantity Refer to Exhibit 3-5. In the market shown, if equilibrium was originally at point Z and the new equilbrium is now at point V, this change may have been caused by O a decrease in consumers' income (assuming that this is an inferior good) and a simulancous decline in technology in tho of this good O an increase in consumers' income (assuming that this is an inferior good) and a simultancous improvement in technology in the production of this good a decrease in consumers' income (assuming that this is an inferior good) and no change in supply O an increase in consumers' income (assuming that this is an inferior good) and no change in supply Next .

Explanation / Answer

Answer
Option 3
A decrease in consumers' income
The decrease in consumers' income increases the demand for the good if the good is inferior and shifts the demand curve to the right and there is no change in supply as the supply curve is S1 in both the equilibriums

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.