Question
An increase in John's income from P9,000 to P10,000 causes his demand for GOOD X to increase from 5 to 6 kilos a month. Question:
An increase in John's income from P9,000 to P10,000 causes his demand for GOOD X to increase from 5 to 6 kilos a month.
Question:
(a) What kind of good is GOOD X?
(b) If you were the merchant of GOOD X, would you pursue a price increase given its nature?
Show computations. Explain your answers thoroughly.
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Economics Today The Macro View
Authors: Roger LeRoy Miller
19th Edition
0134478762, 978-0134478760
