Economics for Today 9th Edition by Irvin Tucker

Exercise 36

Explain the effect of the following situations:
A) Population growth surges rapidly.
B) The prices of resources used in the production of good X increase.
C) The government is paying a $1-per-unit subsidy for each unit of a good produced.
D) The incomes of consumers of normal good X increase.
E) The incomes of consumers of inferior good Y decrease.
F) Farmers are deciding what crop to plant and learn that the price of corn has fallen relative to the price of cotton.