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

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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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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