Suppose That Consumer Income Decreases and That Hamburger Is an Inferior

question 268

Multiple Choice

Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?

• A)Market clearing price will rise, and equilibrium quantity will rise.
• B)Market clearing price will fall, and equilibrium quantity will fall.
• C)Market clearing price will rise, and equilibrium quantity will fall.
• D)Market clearing price will fall, and equilibrium quantity will rise.

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Definitions:

Maturity Value

Maturity Value is the amount payable to an investor at the maturity date of a financial instrument, typically including the principal and the interest.

Note Receivable

A written promise to pay a specified amount, usually interest-bearing, that is recognized as an asset on the lender's balance sheet.

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.

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A demand for compensation, payment, or property by a person or entity asserting a right against another in a court of law.