Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4QR
To determine
Classifying inferior good and normal good.
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Harry's income declines and as a result, he buys more pumpkin juice. Is pumpkin juice an inferior or a normal good? What happens to Harry's demand curve for pumpkin juice?
Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is the relationship between mac and cheese and income?
Mac and cheese are Substitutes
Mac and cheese are a Normal good
Mac and cheese are an Inferior good
Mac and cheese are unaffected by changes in income
There are three consumers in the market for potato chips; Don, Peggy, and Pete. The following table
displays each consumers' demand schedule for potato chips. For each blank space, type in the
correct answer (write your answer as a number).
Price per bag ($)
.25
.50
.75
1.00
1.25
1.50
Don's demand
7
6
5
4
3
2
Peggy's demand
10
8
6
4
2
0
Pete's demand
6
5
4
3
2
1
a) At a price of $0.75 per bag, the quantity demanded by the market is
[Select]
units of potato chips.
b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is
[Select]
by the market that is equal to [Select]
units
of potato chips.
c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price.
In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips
demanded by the market is equal to 14 units. We can therefore infer that the market price is
[Select]
Chapter 4 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Ch. 4.1 - Prob. 1QQCh. 4.2 - Prob. 2QQCh. 4.3 - Prob. 3QQCh. 4.4 - Prob. 4QQCh. 4 - Prob. 1CQQCh. 4 - Prob. 2CQQCh. 4 - Prob. 3CQQCh. 4 - Prob. 4CQQCh. 4 - Prob. 5CQQCh. 4 - Prob. 6CQQ
Ch. 4 - Prob. 1QRCh. 4 - Prob. 2QRCh. 4 - Prob. 3QRCh. 4 - Prob. 4QRCh. 4 - Prob. 5QRCh. 4 - Prob. 6QRCh. 4 - Prob. 7QRCh. 4 - Prob. 8QRCh. 4 - Prob. 9QRCh. 4 - Prob. 1PACh. 4 - Prob. 2PACh. 4 - Consider the market for minivans. For each of the...Ch. 4 - Prob. 4PACh. 4 - Prob. 5PACh. 4 - Prob. 6PACh. 4 - Prob. 7PACh. 4 - Prob. 8PACh. 4 - Prob. 9PACh. 4 - Prob. 10PACh. 4 - Prob. 11PA
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