ita buys only two items form the market—bread and jeans. Her income and the price of bread is constant. As jeans become costlier she buys less bread. Which of the following does this imply. Why? price elasticity of demand for jeans is less than 1 (one) Jeans are a luxury Bread is an inferior good There is no substitution effect in this case
ita buys only two items form the market—bread and jeans. Her income and the price of bread is constant. As jeans become costlier she buys less bread. Which of the following does this imply. Why? price elasticity of demand for jeans is less than 1 (one) Jeans are a luxury Bread is an inferior good There is no substitution effect in this case
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sita buys only two items form the market—bread and jeans. Her income and the
- price elasticity of demand for jeans is less than 1 (one)
- Jeans are a luxury
- Bread is an inferior good
- There is no substitution effect in this case
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