Assume That the Market for Baseballs Is in Equilibrium

question 100

Multiple Choice

Assume that the market for baseballs is in equilibrium.There is a sudden decrease in income throughout the economy.If all else is held constant,we would expect that:

• A) if baseballs are an inferior good, then the demand curve will shift to the left, causing the equilibrium price and quantity to fall.
• B) if baseballs are a normal good, then the demand curve will shift to the right, causing the equilibrium price and quantity to rise.
• C) if baseballs are an inferior good, then the demand curve will shift to the right, causing the equilibrium price and quantity to fall.
• D) if baseballs are a normal good, then the demand curve will shift to the left, causing the equilibrium price and quantity to fall.
• E) if baseballs are a normal good, then the demand curve will shift to the left, causing the equilibrium price and quantity to rise.

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Definitions:

Splitting Responsibility

Dividing duties, tasks, or obligations among individuals or groups to ensure accountability and efficiency in achieving objectives.

Cognitive Dissonance

A psychological state characterized by experiencing conflicting thoughts, beliefs, or attitudes, especially relating to behavioral decisions and attitude change.

Z Problem-Solving Model

An approach to problem-solving that integrates both analytical and intuitive strategies, often represented in four stages resembling the letter "Z".

Nonpreferences

The absence of a preference or inclination towards any particular option or choice.