Question

The economists at JET Consulting consider Campbell’s Soup to be an inferior good. During a recession, when the income in the economy is decreasing, economists at JET Consulting would expect the demand curve for Campbell’s Soup to ________, causing the equilibrium price to ________ and the equilibrium quantity to ________.

Answer 1

Answer:

Shift to right

increase

increase.

Explanation:

Demand curve:- It is a representation of number of units of a service will be bought at which price. It is a graph or plot between price and quantity.price on y-axis and quantity on x-axis.

To bring the equilibrium the the demand curve is needed to shift to right to increase the equilibrium of the price and quantity.