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Home : Other Subjects : Economics Study Guides : Microeconomics : Supply & Demand : Demand : Practice Problems
Practice Problems
Problem 2.1:
Which of the following are complementary goods, and which are
substitute goods?
Right and left shoes? Sweaters and sweatshirts? Hot dogs and ketchup? Nickels and dimes? Ice cream and sorbet? Chips and salsa? [Solution] Problem 2.2:
If Marianne is grocery shopping for cheese and notices that there
is a sale on Swiss cheese, how will that affect her demand for Swiss
cheese and Emmenthal cheese?
[Solution]
Problem 2.3:
Consider the case where Katie gets a raise. How will that affect
her consumption of Spam (an inferior good) and steak (a normal good)?
What if her income drops? What will happen to her Spam and steak
consumption?
[Solution]
Problem 2.4:
One of Ruby's favorite cereals, Special K, is on sale at 20% off.
How will that affect her buying decision between Special K and
Cheerios? What if both are on sale at 20% off?
[Solution]
Problem 2.5:
What is the difference between a Giffen good and a normal good?
[Solution]
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