6.5 Hard Times Burt buys only rotgut whiskey and jelly donuts to sustain him. For Burt, rotgut...
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6.5 Hard Times Burt buys only rotgut whiskey and jelly donuts to sustain him. For Burt, rotgut whiskey is an inferior good that exhibits Giffen's paradox, although rotgut whiskey and jelly donuts are Hicksian substitutes in the customary sense. Develop an intuitive explanation to suggest why a rise in the price of rotgut must cause fewer jelly donuts to be bought. That is, the goods must also be gross complements.
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Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324585377
10th Edition
Authors: Walter Nicholson, Christopher M. Snyder
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