Unformatted text preview: and that lobster and butter are compliments (NOT perfect compliments). Derive two demand curves for butter, one when the price of Lobsters is $1, and one when the price of Lobsters is $15. (hint: what happens to the demand for a good when the price of its compliment increases?). Derive at least 2 points for each demand curve. Make sure that it is clear what your procedure is for finding these points....
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This note was uploaded on 09/14/2009 for the course ECON 304K taught by Professor Ledyard during the Fall '08 term at University of Texas.
- Fall '08