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Unformatted text preview: demanded. Therefore, demand was inelasic, just not perfectly so. Chapter 6 (# 2 and #9) 2) # of Cookies Marginal Utility 1 100 2 100 3 75 4 50 5 25 6 10 7 The maximum he would buy is six because the seventh yields no marginal utility. 9. (b) As shown on the graph, the household ends up at Point A, buying 50 X and 25 Y . (d) X is a normal because consumption increases from 50 to 160. Y is inferior because consumption decreases from 25 to 20. Appendix Chapter 6 (#2) 2. I/P x1 = 100 and I = 100, thus P x1 = $1.00 (Point A on demand curve) I/P x2 = 200 and I = 100, thus P x2 = $0.50 (Point B on demand curve) I/P x3 = 300 and I = 100, thus P x3 = $0.33 (Point C on demand curve)...
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This note was uploaded on 06/15/2010 for the course EC 142DLB taught by Professor Graceonodipe during the Spring '10 term at Park.
 Spring '10
 GraceOnodipe
 Microeconomics

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