Which of the Following Would Cause Both the Equilibrium Price

question 146

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase?

• A)an increase in consumer income
• B)a drought that sharply reduces barley output
• C)a decrease in consumer income
• D)unusually good weather that results in a bumper crop of barley

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Definitions:

Expected Gain

The anticipated amount of profit or loss that could result from an investment, based on the possible outcomes and their likelihoods.

Revenue

The sum of revenue earned from the sales of products or services that form a company's principal business activities.

Simple Technology

technologies that are straightforward, uncomplicated, and easy to use or implement, often contrasted with high-tech or complex innovations.

Launch

The act of introducing a new product, service, or initiative to the market, often accompanied by marketing and promotional efforts.