Question For each sentence below describing changes in the tangerine market, discuss whether the statement is true, false, or uncertain. Justify your answer. (You will find it helpful to draw a graph for each case.) • If consumers’ income increases, and the wage of the laborers in the industry falls, the quantity
Question For each sentence below describing changes in the tangerine market, discuss whether the statement is true, false, or uncertain. Justify your answer. (You will find it helpful to draw a graph for each case.) • If consumers’ income increases, and the wage of the laborers in the industry falls, the quantity
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 25P
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For each sentence below describing changes in the tangerine market, discuss whether the statement is true, false, or uncertain. Justify your answer. (You will find it helpful to draw a graph for each case.)
• If consumers’ income increases, and the wage of the laborers in the industry falls, the quantity purchased in the market will rise and the price will fall.
• If orange prices decrease, and a new agro-chemical increases the productivity of tangerine trees, the quantity will fall and the price will rise.
• If the price of canning machinery (a complement) increases, and the growing season is unusually cold, both quantity and price will fall.
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