Social Studies, 28.12.2019 02:31 deannajd03

Assume that apples are an inferior good. draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. explain the following situations graphically and in words (draw and label side-by-side graphs for each). a. explain what happens in the short-run if incomes increases by 15%? ( /5)

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