Question
1) Mr. Smith has a daily demand for the famous homemade sausage in beer garden GoedKoop: QS = 30 - 2PS + 2PB + 0.2I
1) Mr. Smith has a daily demand for the famous homemade sausage in beer garden GoedKoop: QS = 30 - 2PS + 2PB + 0.2I In which PS is the price for the sausage, PB is the price for Goedkoop's home brewed beer, and I is Smith's daily income. Is sausage a normal good or an inferior good for Mr. Smith with respect to his daily income?
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
