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:

Total Risk

The complete set of risks associated with an investment, including both systematic and unsystematic risks.

Systematic Risk

Refers to the risk inherent to the entire market or market segment that cannot be mitigated through diversification.

Unsystematic Risk

The danger linked to a particular corporation or sector that can be minimized by spreading investments.

Systematic Risk

The inherent risk associated with the entire market or market segment, also known as market risk.