If You Produce an Inferior Good and Consumers' Incomes Are

question 4

Multiple Choice

If you produce an inferior good and consumers' incomes are expected to decrease, you should anticipate a________ price for your product than the current equilibrium price and a________ equilibrium quantity than the current equilibrium quantity.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Ounces

A unit of weight commonly used in the United States and the United Kingdom, equal to one-sixteenth of a pound.

Labor

The human effort, both physical and intellectual, used in the creation of goods and services.

Labor Rate Variance

The difference between the actual labor costs and the standard labor costs expected for the actual production achieved.

Hours

A measurement of time used to quantify the duration of work performed or the operational time of machinery or businesses.