Answer the following questions A decrease in income should:Select one:a. Shift demand for an inferior product inwardsO b.Shift supply for an inferior product inwardsc.O d.Shift demand for an inferior product outwardsShift supply for an inferior product outwardsClear my choiceAll the following statements are incorrect except:Select one:O a. When a market is in equilibrium, sellers are happy because price is highO b.When a market is in equilibrium, both excess demand and excess supply are zeroWhen a market is in equilibrium, buyers are happy because price is lowO C.O d. When a market is in equilibrium, there may be either excess demand or excess supplyIf a sin tax is placed on sales of alcohol,Select one:O a. the supply curve shifts to the left.O b. the demand curve shifts to the right.O c.the supply curve shifts to the right.O d. the demand curve shifts to the left.

Inferior goods are those goods which are low quality products and it's income effect is negative.

A decrease in income should: Select one: Shift demand for an inferior product inwards Shift supply for an inferior product inwards Shift demand for an inferior product outwards Shift supply for an inferior product outwards Clear my choice a. O b. O C. O d.

A decrease in income should: Select one: Shift demand for an inferior product inwards Shift supply for an inferior product inwards Shift demand for an inferior product outwards Shift supply for an inferior product outwards Clear my choice a. O b. O C. O d.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 10PA

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Question

Answer the following questions

A decrease in income should:
Select one:
a. Shift demand for an inferior product inwards
O b.
Shift supply for an inferior product inwards
c.
O d.
Shift demand for an inferior product outwards
Shift supply for an inferior product outwards
Clear my choice
All the following statements are incorrect except:
Select one:
O a. When a market is in equilibrium, sellers are happy because price is high
O b.
When a market is in equilibrium, both excess demand and excess supply are zero
When a market is in equilibrium, buyers are happy because price is low
O C.
O d. When a market is in equilibrium, there may be either excess demand or excess supply
If a sin tax is placed on sales of alcohol,
Select one:
O a. the supply curve shifts to the left.
O b. the demand curve shifts to the right.
O c.
the supply curve shifts to the right.
O d. the demand curve shifts to the left.

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