Suppose You Manage a Corner Grocery Store

question 149

Multiple Choice

Suppose you manage a corner grocery store.If peanut butter is an inferior good,what do you suppose would happen to the price and quantity sold of peanut butter as incomes fell during a recession?

• A)The price would increase and the quantity would decrease.
• B)The price and quantity would both increase.
• C)The price and quantity would both decrease.
• D)The price would decrease and the quantity would increase.

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