Question

Jane spent all her income on hot dogs and caviar. Her demand curve for caviar was inelastic at all prices for caviar. Unfortunately, an accident at a nuclear power plant caused the supply of caviar to fall and the price to rise. What happened to Jane’s consumption of hot dogs? Explain. (Note: You should assume that the accident had no effect on the price of hot dogs or Jane’s preference for caviar.)



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  • CreatedDecember 12, 2014
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