Advanced Placement (AP)

Advanced Placement (AP)

16 May, 13:17

Suppose the wages of the cafeteria workers on campus increase by 10% forcing the price of meals to increase at the same time your scholarship income doubles. (Cafeteria meals are an inferior good.) How will these changes impact the quantity and price levels in the cafeteria food market?

Quantity / Price

A. Increase / Indeterminate

B. Increase / Decrease

C. Decrease / Indeterminate

D. Decrease / Increase

E. Indeterminate / Decrease

+4

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