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d) Assume the budget is back at 40$, but the price per slice of pizza is now 6$. Find the optimal consumption bundle. 6) Assu

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a),steel is an input in the production of cars and increase in price of inputs decreases the supply of cars. This results in increase in equilibrium price and decrease in equilibrium quantity.

b) motorcycles are substitutes to cars and decrease in price of substitute decreases the demand for cars. This results in decrease in equilibrium price and quantity.

Prie -170 Cass

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