Question

If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant?

Answer 1

Answer:

correct answer is $6 and 4 units

Explanation:

given data

initial price =  $8

initial quantity = 6 units

solution

when here quantity will be 4 unit

than income will rise and quantity fall  

and

when price will $6  

then quantity will be 4 unit

so  here price fall but quantity rise

but here quantity is fall due to rise in price

so answer is $6 and 4 units