$4 Price of pizza 0 с D₁ D₂ Number of pizzas per month on demand curve D2 would be caused by a(n) D3 Q OA) decrease in income, assuming pizza is a normal good. B) decrease in the price of hamburgers, assuming that pizza and hamburgers are substitutes. C) decrease in the price of pizza. OD) increase in the price of pizza.

$4 Price of pizza 0 с D₁ D₂ Number of pizzas per month on demand curve D2 would be caused by a(n) D3 Q OA) decrease in income, assuming pizza is a normal good. B) decrease in the price of hamburgers, assuming that pizza and hamburgers are substitutes. C) decrease in the price of pizza. OD) increase in the price of pizza.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

A movement from Point C to Point B on demand curve D2 would be caused by a(n)
$4
Price of pizza
0
A
B
с
D₁ D₂
Number of pizzas
per month
D3
Q
A) decrease in income, assuming pizza is a normal good.
B) decrease in the price of hamburgers, assuming that pizza and hamburgers are substitutes.
C) decrease in the price of pizza.
D) increase in the price of pizza.

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05- Income and Substitution Effects Question 5
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