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:

Transportation Problem

A type of optimization issue in operations research that involves finding the most efficient way to distribute goods from several suppliers to several consumers.

Improvement Index

A metric or measure used to gauge the level of performance enhancement or progress in a given area or system over a period.

Minimization Problem

A type of optimization problem focused on finding the lowest value of a function within a given set of constraints.

Reallocation

The process of relocating resources or assets from one place, project, or use to another to improve efficiency or outcomes.