Ch 21. What does a demand curve represent? Why are they downward sloping?
2. When your income increases, you buy more steak. Is steak a normal good or an inferior good? When your income increases, you buy fewer ramen noodles. Are they normal or inferior? What qualities do inferior goods usually have?
3. If drivers expect gas prices to drop next week, how does that affect the demand for gasoline in the present?
4. Suppose the price of the car you want is $30,000 (everyone can buy/sell the car for that price). Your willingness to pay for the car is $25,000. Should you buy it?
5. Now suppose you win the car in a contest. Should you keep the car?