Which of the Following Would Cause Both the Equilibrium Price

question 255

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of no-name cereal (an inferior good) to increase?

• A) an increase in consumer income
• B) a decrease in consumer income
• C) an increase in the wages for cereal plant workers
• D) a decrease in harvest yields

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Definitions:

Care work

Labor, often unpaid and performed by family members, associated with the care of the young, elderly, or sick, including both physical and emotional support.

Psychological costs

The mental and emotional toll or burdens that can result from stressful experiences or significant life events.

Economic costs

The total value of all the resources used to produce a good or service, including both direct and indirect expenses.

Caregiving

The act of providing care, assistance, or support to someone in need, often a family member or loved one, due to injury, illness, or disability.