PS2.5 - Rice University ECON 211, Fall 2009 Problem Set 2...

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Rice University ECON 211, Fall 2009 Problem Set 2 (100 points) Due on Friday, Sept. 11 Note that there are two parts to this assignment. You must hand in answers to questions in Part I. They will be graded. Questions in Part II will be discussed in the Tutorial sessions. You should not hand in answers for them. They will not be graded. Answers to all questions – in both Parts – will be posted on OwlSpace. Please keep your work neat. Make it easier for the graders! (Please type your answers whenever possible. Thanks.) Part I. 1. ( 24pts .) Diagram the effects of the following events on the supply and/or demand for raisin bran cereal, assume that raisins are a factor in the production raisin bran cereal and milk is a complementary good. Use three separate graphs such as the one below – one for each of the three parts of the question. a) The price of raisin increases. b) The price of milk decreases.
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c) The price of raisin increases and the price of milk decreases. 2. (
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PS2.5 - Rice University ECON 211, Fall 2009 Problem Set 2...

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