CS502 MIDTERM PAST PAPERS BY MOAAZ
See the chart above. For each situation, the replacement impact is shown by development from point a to point b and the replacement impact is shown by development from direct b toward point c.
Is there any Giffen merchandise that you consume? In the event that not, would you be able to think about any conditions in which at least one thing of your users could become Giffen products?
It is improbable that any of the products you consume are Giffen merchandise. One potential exemption might be merchandise where you have a particular spending plan for at least two things, where one thing is a lot less expensive: for example, natural product purchased from a greengrocer (or rehri while in the city).
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If, say, apples are at first a lot less expensive than bananas, you might have the option to manage the cost of a portion of each. Then, at that point, you observe that apples have gotten more expensive, however, are as yet less expensive than bananas.
What do you do? By proceeding to get a portion of each natural product you might feel that you are not eating an adequate number of bits of natural product to keep you solid thus you substitute apples for bananas, in this manner buying a bigger number of apples than previously (yet most likely fewer bits of the organic product than initially).
FIRM A firm is any coordinated type of creation, where somebody or assortments of people are associated with the development of labor and products. An association that joins assets for the creation and supply of labor and products.
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