your reference (title, author, edition, page, web page, date) as a footnote. Copy and paste are not allowed. In resolving exercises, show step by step how you obtained your final result, otherwise you will loose points. Take into account the due date for submitting assignments. I do not accept assignments beyond this date.
1 When do we say that two commodities are complements or substitutes?
2. When do we classify goods as normal or inferior?
3. Evaluate the following statements as true or false and explain why.
a. A 20% increase in the price of XBOX will decrease the demand for XBOX.
b. If income decreases during a recession and the demand for XBOX also decreases, then XBOX can be considered an inferior good.
c. The equilibrium price for XBOX will decrease and the equilibrium quantity will decrease if the supply curve for XBOX decreases while the demand curve for XBOX remains constant.
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