Suppose That Consumer Income Increases and That Ground Meat Is

question 117

Multiple Choice

Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market for ground meat?

• A) Market clearing price will rise, and equilibrium quantity will rise.
• B) Market clearing price will fall, and equilibrium quantity will fall.
• C) Market clearing price will rise, and equilibrium quantity will fall.
• D) Market clearing price will fall, and equilibrium quantity will rise.

---

Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the preparation of financial statements in the U.S.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim on the company's resources.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a company is not profitable.