Refer to Figure 3-7. Assume that the graphs in this figure ...

[Yolanda]

Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?
 
  A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)

Question 2

Refer to Figure 7-5. With insurance and a third-party payer system, what price do doctors receive for medical services?
 
  A) 40 B) 55 C) 65 D) > 65

[Dominic]

Answer to Question 1

D

Answer to Question 2

C