Which of the Following Raises the Equilibrium Price and Increases

question 310

Multiple Choice

Which of the following raises the equilibrium price and increases the equilibrium quantity of used cars?

• A) a fall in income if used cars are an inferior good
• B) an increase in the wage rate paid to used car salespeople
• C) neither of the above because the question suggests a violation of the "law of demand"
• D) neither of the above because the question suggests a violation of the "law of supply"

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Definitions:

Reasonable Commercial Standards

The accepted norms and practices within a particular industry or trade that are considered to be fair and appropriate.

Demand Instrument

A demand instrument is a financial document that requires payment of a specified sum of money immediately upon demand or within a short time frame.

Overdue

Refers to something being past its expected or scheduled time, often used in the context of payments or tasks.

Primarily Liable

Refers to the party that bears the first or main responsibility for fulfilling an obligation or debt.