The fresh fruit market and frozen dinner market are currently in equilibrium. Fresh fruit is a normal good for consumers and frozen dinners are an inferior good. Given an upward sloping supply curve, if there is an economic boom that increases consumers' incomes, this will lead to: an increase in the equilibrium price of frozen dinners a decrease in the equilibrium quantity of fresh fruit an increase in the equilibrium price of fresh fruit
The fresh fruit market and frozen dinner market are currently in equilibrium. Fresh fruit is a normal good for consumers and frozen dinners are an inferior good. Given an upward sloping supply curve, if there is an economic boom that increases consumers' incomes, this will lead to: an increase in the equilibrium price of frozen dinners a decrease in the equilibrium quantity of fresh fruit an increase in the equilibrium price of fresh fruit
Chapter4: Markets In Action
Section: Chapter Questions
Problem 6SQ
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Transcribed Image Text:The fresh fruit market and frozen dinner market are currently in equilibrium. Fresh fruit is a
normal good for consumers and frozen dinners are an inferior good. Given an upward sloping
supply curve, if there is an economic boom that increases consumers' incomes, this will lead to:
an increase in the equilibrium price of frozen dinners
a decrease in the equilibrium quantity of fresh fruit
an increase in the equilibrium price of fresh fruit
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