Explain why each of the following statements is false: If beer and wine are substitutes, an increase in the price of beer will increase both the demand and supply of wine. An increase in the price of Pepsi would increase the quantity demanded of Coke but not the demand for Coke. An increase in income causes an increase in demand for all goods.
Explain why each of the following statements is false: If beer and wine are substitutes, an increase in the price of beer will increase both the demand and supply of wine. An increase in the price of Pepsi would increase the quantity demanded of Coke but not the demand for Coke. An increase in income causes an increase in demand for all goods.
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 11SQ
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Explain why each of the following statements is false:
- If beer and wine are substitutes, an increase in the
price of beer will increase both thedemand and supply of wine. - An increase in the price of Pepsi would increase the quantity demanded of Coke but not the demand for Coke.
- An increase in income causes an increase in demand for all goods.
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