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Economics - Financial Markets
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OpenStudy (anonymous):
Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane's consumption of hot dogs?
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OpenStudy (anonymous):
Her MU/P for caviar will fall so she will increase her consumption of hot dogs.
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