Question
Read the statement made by each of the following individuals and provide a brief explanation as to why their statements are incorrect (false). 3.1 Susan
Read the statement made by each of the following individuals and provide a brief explanation as to why their statements are incorrect (false).
3.1 Susan says: "A change in supply and a change in quantity supplied is the same thing."
3.2 John says: "If X is an inferior good and Y is a compliment for X, then if income increases, the 9 demand for X and the price of X will increase. As a result, the demand for Y will decrease."
3.3 Molo says: "If government sets a regulatory price above the current equilibrium price, it represents a price-ceiling. This will result in a surplus, as the quantity demanded will outweigh the quantity supplied at the regulatory price."
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