Consider a downward-sloping demand curve. When the price of a ...

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Consider a downward-sloping demand curve. When the price of a normal good decreases, the income and substitution effects
 
  A) work in the same direction to increase quantity demanded.
  B) work in the same direction to decrease quantity demanded.
  C) work in opposite directions and quantity demanded increases.
  D) work in opposite directions and quantity demanded decreases.

Question 2

Refer to Table 13-1. What is the marginal revenue of the 3rd unit?
 
  A) 6.50 B) 5.50 C) 1.83 D) 0.50

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Answer to Question 1

A

Answer to Question 2

B