Suppose there is a 10 percent increase in the prices of the following products. Keeping in mind

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Suppose there is a 10 percent increase in the prices of the following products. Keeping in mind how large a fraction of a typical consumer's budget these items are, explain whether you think the income effect in each case would be small or large, and why.

a. Salt

b. Jeans
c. Canned vegetables
d. Gasoline
e. Mini-vans
f. Rental apartments
g. Luxury cars
h. Cell phones
i. Vacations to Cuba
j. Fee for one-day car rentals
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Microeconomics

ISBN: 978-0321866349

14th canadian Edition

Authors: Christopher T.S. Ragan, Richard G Lipsey

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