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Unformatted text preview: P Í Í Í D D 1 0 Q Decrease in tastes and preferences for cantaloupes. (2) an increase in the price of honeydew melons. 2 P Î Î Î D 1 D Q If honeydews are a substitute, the demand for cantaloupes increases. If honeydews and cantaloupes are not related Î not a substitute, then no change in demand for cantaloupes. (3) an increase in per capita income. P Î Î Î D 1 D 0 Q If cantaloupes are a superior/normal good Î increase in demand. No change in cantaloupe demand if cantaloupes are a neutral good. Decrease in demand for cantaloupes if cantaloupes are an inferior good. (4) an increase in the wages of workers picking cantaloupes. P Î Î Î D 1 D 0 Q Higher wages Î Increase income Î Increase in demand if cantaloupes are a superior/normal good....
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09