Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 4, Problem 5CQQ
To determine
Market for inferior goods.
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If the economy goes into a recession and incomesfall, what happens in the markets for inferior goods?a. Prices and quantities both rise.b. Prices and quantities both fall.c. Prices rise and quantities fall.d. Prices fall and quantities rise.
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Chapter 4 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Ch. 4.1 - Prob. 1QQCh. 4.2 - Prob. 2QQCh. 4.3 - Prob. 3QQCh. 4.4 - Prob. 4QQCh. 4 - Prob. 1CQQCh. 4 - Prob. 2CQQCh. 4 - Prob. 3CQQCh. 4 - Prob. 4CQQCh. 4 - Prob. 5CQQCh. 4 - Prob. 6CQQ
Ch. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QRCh. 4 - Prob. 4QRCh. 4 - Prob. 5QRCh. 4 - Prob. 6QRCh. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Consider the market for minivans. For each of the...Ch. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Prob. 10PACh. 4 - Prob. 11PA
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- What would happen to the equilibrium price and quantity of macaroni and cheese if consumers' income fall and macaroni and cheese is an inferior good? a. both the equilibrium price and quantity would increase b. both the equilibrium price and quantity would decrease c. the equilibrium price would increase, and the equilibrium quantity would decrease. d. the equilibrium price would decrease, and the equilibrium quantity would increae.arrow_forwardAssume that good Z is an inferior good for a consumer. If the consumer's income increases, thenA. the supply of good Z will increase.B. the supply of good Z will decrease.C. the demand of good Z will increase.D. the demand of good Z will decrease.arrow_forwardIf the price of a product is below the equilibrium price, the result will be A. A shortage of the good. B. A surplus of the good. C. A decrease in the supply of the good. D. An increase in the demand of the good.arrow_forward
- If good B is a substitute for good A and the price of good B increases, a. the demand for good A will increase. b. the price of good A will decrease. c. the quantity demanded of good B will increase. d. the quantity demanded of good A will decrease.arrow_forwardWhat happened to the equilibrium price of cars when Henry Ford began using the assembly line? A. Price decrease, Quantity decrease B. Price decrease, Quantity increase C. Price increase, Quantity increase D. Price increase, Quantity decreasearrow_forwardhelp me tutors (choose answer correctly) not neccessarily to explan. 1. Evaluate the movement from point A to point B on the graph shows. a. decrease in demand. b. decrease in quantity demanded.c. an increase in quantity demanded.d. an increase in demand. 2. According to the graph, what are equilibrium price and quantity. a. $7, 20 b. $5, 40c. $7, 60 d. $3, 60arrow_forward
- What would happen to the equilibrium price and quantity of Apples if consumers incomes rise and Apples are an inferior good? A.Both the equilibrium price and quantity would increase. B.Both the equilibrium price and quantity would decrease. C.The equilibrium price would decrease, and the equilibrium quantity would increase. D.The equilibrium price would increase, and the equilibrium quantity would decrease.arrow_forwardA drought reduces the supply of coffee and, at the same time, a new study reveals that coffee helps increase brain activity and make people smarter. What would happen to the price and quantity of coffee as a result? Select one: a. Price will increase, but quantity can increase, decrease or remain the same b. Price will decrease, but quantity can increase, decrease or remain the same c. Quantity will increase, but price can increase, decrease or remain the same d. Quantity will decrease, but price can increase, decrease or remain the same e. Price and quantity will both remain the samearrow_forwardIf peas and beans are substitute goods, an increase in the cost of production of peas will most likely result in a. an increase in demand for beans and a decrease in supply of peas. b. an increase in demand for beans and a decrease in the quantity demanded of peas. c. an increase in the quantity supplied of beans, and a decrease in the supply of peas. d. all of the above. A decrease in the price of a good will cause a a. shift left of the demand curve for the good b. shift right of the demand curve for the good c. movement up the existing demand curve d. movement down the existing demand curvearrow_forward
- If peas and beans are substitute goods, an increase in the cost of production of peas will most likely result in a. an increase in demand for beans and a decrease in supply of peas. b. an increase in demand for beans and a decrease in the quantity demanded of peas. c. an increase in the quantity supplied of beans, and a decrease in the supply of peas.arrow_forwardA rise in the wages paid to workers in the beef industry will: A. Decrease both the supply and demand for beef, lowering the equilibrium price but raising the equilibrium quantity of beef. B. Increase the demand beef, raising the equilibrium price and quantity of beef. C. Decrease the supply of beef, raising the equilibrium price and quantity of beef. D. Decrease the supply of beef, raising the equilibrium price but lowering the equilibrium quantity of beef. E. Decrease the demand for beef, lowering the equilibrium price and quantity of beef.arrow_forwardOC.C d. B QUESTION 31 We say that a good is an inferior good if a. the quantity demanded for the good rises when the price falls. b. the demand for the good rises when income falls OC. the demand for the good rises when the price falls d. the demand for the good rises when income rises QUESTION 32 DOOarrow_forward
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