Assume That the Market for Baseballs Is in Equilibrium

question 100

Multiple Choice

Assume that the market for baseballs is in equilibrium.There is a sudden decrease in income throughout the economy.If all else is held constant,we would expect that:

• A) if baseballs are an inferior good, then the demand curve will shift to the left, causing the equilibrium price and quantity to fall.
• B) if baseballs are a normal good, then the demand curve will shift to the right, causing the equilibrium price and quantity to rise.
• C) if baseballs are an inferior good, then the demand curve will shift to the right, causing the equilibrium price and quantity to fall.
• D) if baseballs are a normal good, then the demand curve will shift to the left, causing the equilibrium price and quantity to fall.
• E) if baseballs are a normal good, then the demand curve will shift to the left, causing the equilibrium price and quantity to rise.

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Definitions:

Baking Supplies

Baking supplies encompass all tools, ingredients, and materials used in baking, ranging from flour and sugar to ovens and mixing tools.

Fixed Cost

Any cost that in total does not change when the firm changes its output.

Harvest Labor

The workforce engaged in the process of gathering ripe crops from the fields.

Marginal Cost

The cost of producing one additional unit of a product, critical for decision-making in production.