What will happen to the equilibrium price and equilibrium quantity of ice cream cones when consumers' incomes decrease?
A) If ice cream cones are a normal good, then the equilibrium price and quantity of ice cream cones will decrease.
B) If ice cream cones are a normal good, then the equilibrium price and equilibrium quantity of ice cream cones will increase.
C) If ice cream cones are an inferior good, then the equilibrium price for an ice cream cone will increase and the equilibrium quantity of ice cream cones will decrease.
D) If ice cream cones are an inferior good, then the equilibrium price and quantity of ice cream cones will decrease.
A
You might also like to view...
When the British pound rises in value relative to other currencies, then
A) goods imported into Britain rise in price. B) British exports rise in price. C) neither British exports nor imports rise in price. D) both British exports and imports rise in price.
The production possibilities curve depicts the combinations of two goods that can be
a. viewed as creating international specialization, one country producing one good, the other a second good b. produced with a given level of technology and set of resources c. consumed with a given quantity of resources and level of technology d. produced with varying levels of unemployment of resources e. produced with varying levels of unemployment and underemployment of resources