In each of the following, what is the mistake that underlies the statement? Explain the mistake in
Question:
In each of the following, what is the mistake that underlies the statement? Explain the mistake in terms of supply and demand and the factors that influence them.
a. Consumers are illogical because they are buying more Starbucks beverages in 2017 despite the fact that Starbucks has raised prices from 10 to 30 cents per drink.
b. Consumers are illogical because they buy less at Costco when their incomes go up.
c. Consumers are illogical for buying an iPhone 7 when an iPhone 5 costs less.
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a This statement ignores the possibility that consumers are buying more Starbucks beverages ...View the full answer
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Related Book For 
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
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