contestada

Suppose the frozen pizza market is in equilibrium. A recession causes local household incomes to decline. Assuming that frozen pizza is an inferior good, we can predict that the price of frozen pizza will _____ and the quantity of frozen pizza bought and sold will _____.

Respuesta :

Answer:

increase

increase

Explanation:

Inferior goods are goods whose demand falls when income rises and increases when income falls.

If frozen pizza is an inferior good, a decrease in income will increase the demand for frozen pizza. this would lead to an increase in price and quantity

Otras preguntas