Question 17 If the economy goes into a recession and incomes fall, what happens in the...

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Question 17 If the economy goes into a recession and incomes fall, what happens in the markets (equilibrium price and quantity) for inferior goods? O Prices rise, quantities fall. O Prices fall, quantities rise. O Prices and quantities both rise O Prices and quantities both fall. Question 18 A decrease in the quantity supplied is represented by a Orightward shift in the supply curve. movement up the supply curve. Oleftward shift in the supply curve. movement down the supply curve. 11 > D Question 19 The price of jet fuel falls. This fall shifts the O demand curve for airplane trips leftward. demand curve for airplane trips rightward. supply curve of airplane trips rightward. supply curve of airplane trips leftward. Question 20 Which of the following correctly describes how price adjustments eliminate a shortage? As the price falls, the quantity demanded decreases while the quantity supplied increases. As the price rises, the quantity demanded increases while the quantity supplied decreases. As the price falls, the quantity demanded increases while the quantity supplied decreases. O As the price rises, the quantity demanded decreases while the quantity supplied increases. Question 17 If the economy goes into a recession and incomes fall, what happens in the markets (equilibrium price and quantity) for inferior goods? O Prices rise, quantities fall. O Prices fall, quantities rise. O Prices and quantities both rise O Prices and quantities both fall. Question 18 A decrease in the quantity supplied is represented by a Orightward shift in the supply curve. movement up the supply curve. Oleftward shift in the supply curve. movement down the supply curve. 11 > D Question 19 The price of jet fuel falls. This fall shifts the O demand curve for airplane trips leftward. demand curve for airplane trips rightward. supply curve of airplane trips rightward. supply curve of airplane trips leftward. Question 20 Which of the following correctly describes how price adjustments eliminate a shortage? As the price falls, the quantity demanded decreases while the quantity supplied increases. As the price rises, the quantity demanded increases while the quantity supplied decreases. As the price falls, the quantity demanded increases while the quantity supplied decreases. O As the price rises, the quantity demanded decreases while the quantity supplied increases.

Answer rating: 100% (QA)

17 Answer Prices and quantities both rise The inferior goods are least preferred when people earn hi... View the full answer