A decrease in both the equilibrium price and the equilibrium quantity of pasta is best explained by an: increase in the expected future price of pasta. increase in the cost of producing pasta. decrease in income if pasta is an inferior good. decrease in the price of rice if pasta and rice are substitute
A decrease in both the equilibrium price and the equilibrium quantity of pasta is best explained by an: increase in the expected future price of pasta. increase in the cost of producing pasta. decrease in income if pasta is an inferior good. decrease in the price of rice if pasta and rice are substitute
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
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Question
A decrease in both the equilibrium price and the equilibrium quantity of pasta is best explained by an:
increase in the expected future price of pasta.
increase in the cost of producing pasta.
decrease in income if pasta is an inferior good.
decrease in the price of rice if pasta and rice are substitutes.
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