Which of the Following Would Cause Both the Equilibrium Price

question 170

Multiple Choice

Which of the following would cause both the equilibrium price and equilibrium quantity of potatoes (assume that potatoes are an inferior good) to decrease?

• A)an increase in consumer income
• B)a freeze that sharply reduces potato output
• C)a decrease in consumer income
• D)a technological advancement that results in a bumper crop of potatoes

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Constraints

Limitations or restrictions that impact the decision-making process, often used in the context of optimization problems and project planning.

Feasible Region

Within optimization challenges, the collection of all feasible points that meet the criteria of the problem.

Linear Programming

A mathematical methodology for determining the best outcome in a given mathematical model for some list of requirements represented as linear relationships.