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In Each of the Following Situations,list What Will Happen to the Equilibrium

question 86

Essay

In each of the following situations,list what will happen to the equilibrium price and the equilibrium quantity for a particular product,which is an inferior good.
a.The population decreases and productivity increases
b.Income increases and the price of inputs increase
c.The number of firms in the market decreases and income decreases
d.Consumer preference decreases and the price of a complement increases
e.The price of a substitute in consumption increases and the price of a substitute in production increases


Definitions:

Debt-to-Income Ratio

A financial measure that compares an individual's total debt to their total gross income, often used by lenders to assess borrowing risk.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Real Growth Rate

The rate at which an economy's gross domestic product (GDP) grows after adjusting for inflation, indicating the actual growth of economic output.

Budget Deficit

A financial situation where a government's expenditures exceed its revenues within a specific period, leading to borrowing or debt accumulation.

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