Test Bank: I Topic: Changes in Supply, Demand, and Equilibrium

Test Bank: I Topic: Changes in Supply, Demand, and Equilibrium In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product
X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.If X is an inferior good, a decrease in income will

A) decrease D, decrease P, and decrease Q.
B) decrease D, decrease P, and increase Q.
C) increase S, decrease P, and increase Q.
D) increase D, increase P, and increase Q.

Correct Answer:

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