Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 4.3, Problem 1ST
To determine
The relative
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Assume there are only two goods (X and Y). Assume the relative price of good X, is 2 of good Y. If income doubles, the price of X doubles and the price of Y doubles, what will be the relative price of good Y?
When Good A and Good B are complements in production and there is a decrease in the price of Good A, what happens in Good B's market?
Goods A and B are substitutes in production. The price of good A rises. As a result,
the equilibrium price of good B and the equilibrium quantity.
A) rises; decreases
B) falls; increases
C) falls; decreases
D) rises; increases
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