Assume an inferior good suppose there is an increase in


Assume an inferior good. Suppose there is an increase in income and a decrease in consumer taste for that good. Additionally, consumers expect an increase in the price of this good. Furthermore, the government has increased the regulations for producing this good thus causing a shutdown of numerous firms that produced this good.

Predict what will happen to the equilibrium price and quantity of this good.

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Business Economics: Assume an inferior good suppose there is an increase in
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