In each of the following situations, graphically show and explain 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 expected future price increases
e. The price of a substitute in consumption increases and the price of a substitute in production increases
Sample Solution
