Which of the Following Raises the Equilibrium Price and Increases

question 98

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

• A) an increase in the wage rate paid to used car salespeople
• B) a fall in income if used cars are an inferior good
• C) Neither of the above because the question suggests a violation of the ʺlaw of demand.ʺ
• D) Neither of the above because the question suggests a violation of the ʺlaw of supply.ʺ

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Definitions:

Painting

The process of applying pigment to a surface using tools such as brushes, to create an artistic expression.

Baking Cakes

A process of cooking food by dry heat, especially in an oven, applied specifically to the creation of cakes.

Comparative Advantage

An economic principle that describes the ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service with the same amount of resources as another, making it more efficient.