In the Following Question You Are Asked to Determine,other Things

question 5

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. Refer to the given information.If X is an inferior good,a decrease in income will:

• A) decrease D,decrease P,and decrease Q.
• B) decrease D,decrease P,and increase Q.
• C) increase S,decrease P,and increase Q.
• D) increase D,increase P,and increase Q.

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Definitions:

Similarity

A measure of how closely two or more distinct objects, ideas, or concepts resemble each other in appearance, function, or properties.

Common Region

A principle of perceptual organization where elements located within the same bounded space are perceived as being grouped together.

Closure

The psychological phenomenon of seeking a sense of resolution or completeness in perceptual or cognitive processes.

Contiguity

A Gestalt principle of perception; the tendency to perceive two things that happen close together in time as being related.