Which of the Following Events Would Cause Both the Equilibrium

question 36

Multiple Choice

Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?

• A)an increase in consumer income
• B)a decrease in consumer income
• C)greater government restrictions on agricultural chemicals
• D)fewer government restrictions on agricultural chemicals

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Definitions:

Experiments

A research method involving manipulation of variables to test hypotheses and determine cause-and-effect relationships.

Spurious Relationships

Relationships where two variables appear to be related due to a coincidence or a third, unseen factor, rather than a direct cause-and-effect link.

Researcher

An individual who systematically investigates and studies materials and sources to establish facts and reach new conclusions.