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Supply and Demand

A) Is it possible that you would purchase more of a good if its price rose? Is it possible that you would buy less of a good whose price falls? WHY or WHY NOT?
B) What is an inferior good?
C) What is the only determinant of demand that can have changed if there is a change in quantity demanded? What if there is a change in demand?
D) Why do changes in price expectations change demand today?
E) Do prices change demand for perishable or hard-to-store goods, like fresh vegetables or gasoline?

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Answer (A):
No it is not possible. This is because of law of demand. Law of demand states that as prices fall quantity demanded rises and as prices rise quantity demanded falls.

Answer (B):
Inferior good is a good whose demand falls as ...

Solution Summary

The solution answers the questions below related to economics

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