Refer to Figure 4.1. The income effect of the price change in food on the quantity of food purchased is:
the change from F3 to F1.
the change from F3 to F2.
the change from F2 to F1.
the change from F1 to F2.
none of the above.
General Motors estimates that U.S. demand for its newest product will be: Qus = 30,000 - 0.5P. Export demand will be Qex = 25,000 - 0.5P. The total market demand curve for this product will be a
straight line with a slope of -0.5.
