Unformatted text preview: effect, if any, will the technological improvement in shirts have on the market of jeans? Specifically, using the S&D graph, explain how this will affect the equilibrium price and quantity of jeans. Will revenues from jeans increase or decrease? c. Suppose now that there was no technological change in the manufacturing of shirts. A market analyst has found that the price of jeans has gone up. Given that incomes have gone down she argues that jeans must be an inferior good. Is she correct?...
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This note was uploaded on 03/10/2008 for the course ECON 010 taught by Professor Stein during the Fall '07 term at UPenn.
- Fall '07
- Supply And Demand