Question #146923
What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500?
A. Small automobiles become more fashionable.
B. The price of large automobiles rises (with the price of other small autos remaining the same.)
C. Income declines and small autos are an inferior good.
D. Consumers anticipate the price of small auto will greatly come down in the future.
A. Small automobiles become more fashionable.
B. The price of large automobiles rises (with the price of other small autos remaining the same.)
C. Income declines and small autos are an inferior good.
D. Consumers anticipate the price of small auto will greatly come down in the future.
Expert's answer
A. Small automobiles become more fashionable - demand increases
B. The price of large automobiles rises (with the price of other small autos remaining the same.) - demand increases
C. Income declines and small autos are an inferior good - demand increases
D. Consumers anticipate the price of small auto will greatly come down in the future - demand increases
