Home » QUESTION 24 Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect…

QUESTION 24 Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect…

QUESTION 24

  1. Suppose the income of buyers in a market for an inferior good decreases and a technological advancement occurs also. What would we expect to happen in the market?
  2. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
  3. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
  4. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
  5. None of the above is correct.

since we are talking about an inferior good then I think when the buyers income goes down they would buy fewer quality or normal goods and buy more inferior goods therefore the demand curve for inferior goods would shift outward to the right and if there is a technological advance then the supply for inferior goods would increase so I think the answer is  3. Equilibrium quantity would increase but the impact on price would be ambiguous

however maybe if buyers income goes down then maybe they just buy fewer of all goods …  if that is the case maybe quantity would be ambiguous and price would go down …..could you please help me clarify my thinking  so I can apply to future questions thank you

is the answer 3

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10