ECN 212 Study Guide - Final Guide: Marginal Revenue, Economic Equilibrium, Indifference Curve
Document Summary
Microeconomics final exam review questions: suppose you have two goods, ice cream and kraft macaroni and cheese (an inferior good to most people). 3 a) filene"s basement, a local boston discount department store, sells a wide selection of household goods and clothing. The manager of household linens is facing an oversupply of queen size sheets and must decide whether or not to put them on sale during the month of november. While reading the boston globe over coffee this past. Sunday, she saw that mattress discounters, a local mattress shop located down the street from filenes, is having a gigantic sale on its queen size mattresses starting this weekend and continuing throughout the month. Explain in words what effect, if any, this should have on her decision about a sale on sheets. 3b) we know that the cross price elasticity of mattress prices on sheet demand is 1. 5.
