Good Y Is an Inferior Good

question 206

Multiple Choice

Good Y is an inferior good.If the average income of those who buy good Y rises,the _____________ curve for good Y will shift ____________ resulting in a(n) _____________ in the equilibrium price of Y and a(n) ____________ in the equilibrium quantity of Y.

• A) supply; rightward; decrease; increase.
• B) demand; leftward; decrease; decrease
• C) demand; rightward; increase; increase
• D) supply; leftward; increase; decrease
• E) supply; leftward; increase; increase

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Definitions:

Collude

To engage in a secret agreement or cooperation, especially with the intention of cheating or deceiving others.

Cartel

An association of independent businesses or countries that work together to control production, pricing, and marketing of goods to monopolize a market.

Monopoly

A firm that is the sole seller of a product without any close substitutes.

Game Theory

The study of how people behave in strategic situations