Spam Is Considered an Inferior Good

question 35

Multiple Choice

Spam is considered an inferior good.What would happen to the equilibrium price and quantity of Spam if income decreased and more firms started producing Spam?

• A) Equilibrium price will go up and equilibrium quantity will go down.
• B) Equilibrium price will go up and equilibrium quantity will go up.
• C) Equilibrium price will go down and equilibrium quantity will be indeterminate.
• D) Equilibrium price will be indeterminate and equilibrium quantity will go up.
• E) Equilibrium price will go up and equilibrium quantity will be indeterminate.

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