Question
You manage a pasta-making company. Your market research has shown that consumers view spinach linguini as a normal good and ramen noodles as an inferior
You manage a pasta-making company. Your market research has shown that consumers view spinach linguini as a “normal good” and ramen noodles as an “inferior good.” Your management team expects the U.S. economy to enter a recession in the near future (implying that consumers’ income, on average, will decline). Using the supply and demand model, explain, when the recession hits, what you expect to happen (1) in the market for spinach linguini and (2) the market for ramen noodles.
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
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