ECON 2000 : Exam 1 Review 2
Document Summary
These items: complements, inferior, normal must be, inferior goods, the quantity demanded of coca cola has increased. As the result of a decrease in the price of cell phones, the firm produces more mp# players and fewer cell phones. At a price of , there is an excess: demand of 150 sunglasses, supply of 300 sunglasses, demand of 450 sunglasses, demand of 300 sunglasses, suppose that iphones are normal goods. The market is initially in equilibrium at point a. The market is initially in equilibrium at the intersection of s2 and d, and supply shifts from s2 to s1. Which of the following statements is true: price will still serve as a rationing device causing quantity demanded to rise from 8 to. C): when the price of good a increases 10%, quantity demanded decreases 5%. The price elasticity of demand for good a is ________ and the total revenue from good a sales will.
