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Unformatted text preview: 7 8 CHAPTER 6. REVIEW: DEMAND 6.5 Price oﬀer curves and the demand curve 6.6 Substitute and complements If the demand for good 1 goes up when the price of good 2 goes up, then we say that good 1 is a substitute for good 2. In terms of rates of change, good 1 is a substitute for good 2 if 4 x 1 4 p 2 > On the other hand, if the demand of good 1 goes down when the price of good 2 goes up, we say good 1 is a complement to good 2. This means that 6.7. THE INVERSE DEMAND FUNCTION 9 4 x 1 4 p 2 < 6.7 The inverse demand function...
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This note was uploaded on 03/14/2010 for the course ECON microecono taught by Professor Yy during the Spring '10 term at Seoul National.
 Spring '10
 YY
 Microeconomics

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