Assume that the economy has two sectors, milk and orange juice, and that both sectors are initially in long-run competitive equilibrium. Milk and orange juice are substitute goods. Trace the effects of a change in preferences that increases the demand for orange juice.

Question

Quizplus · Accepted Answer

The Answer of Assume that the economy has two sectors, milk and orange juice, and that both sectors are initially in long-run competitive equilibrium. Milk and orange juice are substitute goods. Trace the effects of a change in preferences that increases the demand for orange juice.

Assume That the Economy Has Two Sectors, Milk and Orange