use decrease and/or increase a. there is an increase in income and the good is an...

use decrease and/or increase

a. there is an increase in income and the good is an inferior good. the equilibrium price will _______ and the equilibrium quantity will _______.

b. buyers expect the price of a good to fall in the future. the equilibrium price will _______ and the equilibrium quantity will _______.

draw a market that is initially in equilibrium, labelling the initial equilibrium price and equilibrium quantity. then show what happens in each market based on the given scenarios. label the new equilibrium price and equipment quantity. write the given sentence after each scenario and fill in the blanks with the words "increase " or "decrease " to describe what happens.

Expert Solution

a) The equilibrium price will "decrease" and the equilibrium quantity will "decrease"

b) "Decrease" (because people expect the price to fall in the future) Equilibrium quantity will "decrease"

Rahul Sunny answered 2 years ago

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