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Unformatted text preview: 7. CD’s a. 2 of Charlie Parker’s CD and 4 of Lester Young’s b. 3 of Charlie Parker’s CD and 1 of Lester Young’s c. This shows that as price of good increases the marginal utility decreases, because people do not get as much satisfaction at the higher price, there for the demand for the product in this case CDs declines. 9. Wine a. Most people wanted the 10cent bottle of wine because in our world people believe that more expensive things are better. This proves the case pretty well since both bottles where exactly the same b. This happens all over the world, you go into a store and see two products both look the same but one has a higher price. It is human nature to think that the one with a higher price is better. c. This suggest that suppliers might not want to put a price to low on their good or else people might think that it is an inferior good and not buy it....
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This note was uploaded on 04/21/2008 for the course AEC Food and r taught by Professor Daniel during the Spring '08 term at Mississippi State.
- Spring '08