If a Producer Knew His Product to Be an Inferior

question 123

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

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Definitions:

Democratic Process

The methods and procedures that allow citizens in a democracy to participate in decision-making, commonly through voting in elections.

Civil Disobedience

A form of protest where individuals refuse to obey certain laws, norms, or commands of a government or occupying power without resorting to physical violence, to bring about change.

Raises Awareness

The act of bringing a specific issue or cause to the attention of the public or a certain group to generate interest or support.

Law's Punishment

The penalties or sanctions imposed by a legal system on individuals or entities found guilty of violating laws.