II. Determine the effect on equilibrium price and quantity sold if the following changes occur in a particular market" ceteris paribus". Use the comparative static analysis. a. Consumers' income increases and the good is normal. b. The price of a substitute good (in consumption) increases.

II. Determine the effect on equilibrium price and quantity sold if the following changes occur in a particular market" ceteris paribus". Use the comparative static analysis. a. Consumers' income increases and the good is normal. b. The price of a substitute good (in consumption) increases.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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Question

II. Determine the effect on equilibrium price and quantity sold if the
following changes occur in a particular market" ceteris paribus". Use the
comparative static analysis.
a. Consumers' income increases and the good is normal.
b. The price of a substitute good (in consumption) increases.

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