Answer to Question #217875 in Macroeconomics for Gee

Question

The researchers at the Bureau for Market Research at Unisa consider Castle lager beer to be an inferior good. During a recession, when the income in the economy is decreasing, researchers from the Bureau for Market Research would expect the demand curve for Castle lager to ________, causing the equilibrium price to ________ and the equilibrium quantity to ________.

Answer 1

The demand curve for Castle lager will shift to the right.

The equilibrium price will decrease.

The equilibrium quantity will increase.