=+9.2 The following are intended to explore what kinds of own-price demand relationships are logically possible in
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=+9.2 The following are intended to explore what kinds of own-price demand relationships are logically possible in a two-good model with exogenous income (unless otherwise specified).
A. For each of the following, indicate whether the relationship is possible or not and explain:
a. Tastes are homothetic and the own-price demand relationship is positive.
b. A good is inferior and its own-price relationship is negative.
c. In a model with endogenous income, a good is normal and its own-price demand relationship is negative.
d. In a model with endogenous income, a good is normal and its own-price demand relationship is positive.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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