Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
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.
Good X and good Y are substitutes. If the price of good Y increases, then the
a.
Demand for good X will decrease.
b.
Demand for good X will increase.
c.
Quantity demanded of good Y will increase.
d.
Market price of good X will decrease.
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.
Chapter 4 Solutions
Principles of Microeconomics (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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- 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_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_forwardIf supply remains constant and demand increases, what happens to price and quantity? A. Decrease price; decrease quantity B. Increase price; decrease quantity C. Increase price; increase quantity D. Decrease price, increase quantityarrow_forward
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