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Unformatted text preview: 1) Suppose the price of apples (complementary good) increases, the demand for oranges would? Increase/ Decrease /Remain unchanged 2) Suppose incomes increase, the demand for ramen noodles (inferior good) would? Increase/ Decrease /Remain unchanged 3) Suppose the price of coffee increases, the demand for coffee would? Increase/Decrease/ Remain unchanged 4) Suppose consumers expect the price of DVDs to increase in the future, the demand today for DVDs (normal good) would? Increase /Decrease/Remain unchanged 5) If Qd = 100 0.25P then P = 400 4Qd 6) If P = 100 then Qd = 75 7) Qd x = 4000 5P x + 2Inc + 1P Z - 3P A + 0.2P B Using the demand curve above: Good X is a normal /inferior good. X and Z are substitutes /complement goods X and A are substitutes/ complement goods X and B are substitutes /complement goods 8) If the price elasticity of demand is -4 then an increase in price will cause total revenue to...
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This note was uploaded on 09/19/2011 for the course ECN 211 taught by Professor Kingston during the Fall '08 term at ASU.
- Fall '08