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Business Economics
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Title: Business Economics

Essay Details:

Subject: Business
Author: Katie T
Date: April 12, 2013
Level: University
Grade: A
Length: 3 / 689

Essay text:

Price and quantity demanded are inversely related; therefore, this is the correct algebraic sign. c) The slope parameter for income: - 0.03. This would mean that good A is an inferior good because for every $1 increase in income, the consumer demanded 0.03 units less of the good. The equation displays a negative correlation between income and quantity demanded. d) The slope parameter for the price of good B: - 12. This slope parameter explains that goods A and B are substitutes because if there is an increase in price of good B, consumers will demand less of it, and perhaps go back to consuming good A...

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