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Scenario 3 Suppose pickles have the following demand equation: 0.0 = 3200 - 4.2P + 2P5 PT + 0.1Y Where QD is the quantity demanded
Scenario 3 Suppose pickles have the following demand equation: 0.0 = 3200 - 4.2P + 2P5 PT + 0.1Y Where QD is the quantity demanded of pickles, P is the price per pickle, P5 is the price of sausages, PT is the price of tomatoes, and Y is a measure of the consumer income. According to this demand equation, we can say that (circle the correct answer for each): 9. Pickles are: ..................................................................... Normal Goods/Inferior Goods 10. In relation to pickles, Sausages are: ............................ Substitutes/Complements 11. An increase in PT will shift the demand curve: ........... Leftwards/Rightwards
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