1) Suppose that income increases and buyers demand less of this good. This is a(n) -----...

1) Suppose that income increases and buyers demand less of this good. This is a(n) ----- good.

normal
luxury
inferior
laconic

2) Initially a market is in equilibrium. Then sellers anticipate a lower price in the future for this good, and at the same time the price of a substitute for this good increased, and demand shifts less than supply. As a result the equilibrium price ----- and the equilibrium quantity -----.

rises, rises
rises, falls
falls, rises
falls, falls

3) Let inverse demand be P = 12 - Q, and inverse supply be P = 2 + 3Q. The equilibrium price is __________

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Expert Solution

Rahul Sunny answered 7 months ago

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