ECON 1 Lecture 18: ECON 1 11-3-2015
Document Summary
She should consume more cereal, drink less milk. Chapter 5 (2) problem set question 3 a. b. 8 pounds of beef and 0 pounds of seafood. Common sense: if you like something and dislike something else, you would buy all you like. Chapter 5 (2) problem set question 4 a: as a, you are willing to give up 1 iceberg lettuce for each 1 red leaf lettuce, you will purchase 20 iceberg lettuce and 0 red leaf lettuce every month. Chapter 5 (2) problem set question 5 a. Black lines: red lines, black curve red curve, books and vides are complement pv increase qb decrease, substitution effect pv increase video is relatively expensive consume less video. Income effect pv increase real purchasing power decrease (real income decrease), video as normal good consume fewer videos. Mrs (lisa) =1 lisa is willing to give up 1 jeans for 1 sweatshirt.
