c) Which effect dominates, the price effect or the quality effect of a price change if demand is upward sloping? d) Why might demand be downward sloping in a market with imperfect information even though the market is otherwise perfectly competitive? e) Why are focal points important for noncooperative games?
c) Which effect dominates, the price effect or the quality effect of a price change if demand is upward sloping? d) Why might demand be downward sloping in a market with imperfect information even though the market is otherwise perfectly competitive? e) Why are focal points important for noncooperative games?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Subject: Manegerial economics & policy
c) Which effect dominates, the
upward sloping?
d) Why might demand be downward sloping in a market with imperfect information even
though the market is otherwise
e) Why are focal points important for noncooperative games?
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