In economics it is said that two items are substitute items if the Q1 demand for the first grows when the price P2 of the second grows, and if the demand Q2 of the second It grows when the price P1 of the first grows. Give an example of a couple of substitute items. If two items are substitutes, what should happen to the partial derivatives dQ1/dP2 and dQ2/dP1?

In economics it is said that two items are substitute items if the Q1 demand for the first grows when the price P2 of the second grows, and if the demand Q2 of the second It grows when the price P1 of the first grows. Give an example of a couple of substitute items. If two items are substitutes, what should happen to the partial derivatives dQ1/dP2 and dQ2/dP1?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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