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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 17
Sometimes economists are not very careful when they draw supply and demand curves to state clearly whether the price on the vertical axis is a relative (real) price or a nominal price. How would a pure inflation (in which all prices rise together) affect the following:
1. A supply and demand curve diagram that has relative price on the vertical axis?
2. A supply and demand curve diagram that has nominal price on the vertical axis?
1. A supply and demand curve diagram that has relative price on the vertical axis?
2. A supply and demand curve diagram that has nominal price on the vertical axis?
Explanation
Verified
Verified
Relative price is a comparative price, w...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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