Consider the graph. Suppose that the price of a sedan decreased from $20,000 to $15,000. This would cause a the demand curve. A decrease in average income causes a leftward v the demand curve; therefore, you may conclude that sedans are good. (Hint: Try substituting different values for Average Income in the graph input tool and observing what happens.) Suppose that the price of a subway ride rises from $2.00 to $2.50. Because driving a car and taking the subway are , an increase in the price of a subway ride shifts the demand curve for sedans to the
Consider the graph. Suppose that the price of a sedan decreased from $20,000 to $15,000. This would cause a the demand curve. A decrease in average income causes a leftward v the demand curve; therefore, you may conclude that sedans are good. (Hint: Try substituting different values for Average Income in the graph input tool and observing what happens.) Suppose that the price of a subway ride rises from $2.00 to $2.50. Because driving a car and taking the subway are , an increase in the price of a subway ride shifts the demand curve for sedans to the
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 3SCQ: In an analysis of the market for paint, an economist discovers the facts listed below. State whether...
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In economics, the law of demand is an important concept that establishes the functional relation between the price of a good and its quantity demanded. According to this law, holding all the other factors constant, if the price of a good increases, then the quantity demanded for it will fall, and vice versa.
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