Ask Question
3 July, 06:45

If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?

+2
Answers (1)
  1. 3 July, 07:02
    0
    correct answer is $6 and 4 units

    Explanation:

    given data

    initial price = $8

    initial quantity = 6 units

    solution

    when here quantity will be 4 unit

    than income will rise and quantity fall

    and

    when price will $6

    then quantity will be 4 unit

    so here price fall but quantity rise

    but here quantity is fall due to rise in price

    so answer is $6 and 4 units
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers