If a Producer Knew His Product to Be an Inferior

question 136

Multiple Choice

If a producer knew his product to be an inferior good and he also knew average household income was falling,he might

• A)decrease output because the demand for his product would rise.
• B)increase output because the demand for his product would rise.
• C)keep his output the same.
• D)cut output immediately because the demand for his product would surely fall.
• E)close down,because inferior goods are the first to be eliminated from household budgets when income falls.

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Definitions:

Important Request

A significant or critical appeal or requirement that necessitates prompt attention or action.

Inconvenience

A minor trouble or difficulty that causes discomfort or annoyance but is not a serious problem.

Audience Compliance

The extent to which an audience acts in accordance with the expectations or requests of a speaker or message.

Central Request

The primary or most important appeal or demand made within a communication.