Q. economist george stigler once wrote that according to consumer theory "if consumers do not buy less of a commodity when income rise they will surely buy less when the price of the commodity rises " explain this statements using the concepts of income and substituition effects.

Q. sketch a diagram to show the effect on demand of a change in income on a good which has an income of elastic demand

Q. the market for pizz has the following demand and supply schedules

Price: 4, 5, 6, 7, 8, 9,

Qty DD: 135,104,81,68,53,39

Qty ss: 26, 53, 81, 98, 110,121

Graph the demand and supply curve. what is the equilibrium price and qty in this market? if the actual price in this market were above the equilibrium price , what will drive the market towards the equilibrium ? if the actual price in this market were below the equilibrium price, what will drive the market towards the equilibrium?