Mario consumes only cheese and crackers. a. Could cheese and crackers both be inferior goods for Mario?

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Mario consumes only cheese and crackers.
a. Could cheese and crackers both be inferior goods for Mario? Explain.
b. Suppose that cheese is a normal good for Mario while crackers are an inferior good. If the price of cheese falls, what happens to Mario’s consumption of crackers? What happens to his consumption of cheese? Explain.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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