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Microeconomics

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Market Shifts: Days of Wine and Ice Cream

MICRO-PXVO1C

Most people would rather have real vanilla than imitation vanilla. However, real vanilla is more expensive and so people make do with imitation vanilla because they cannot afford the real stuff. Suppose the labor market gets much better and everyone’s wages go way up. Which of these represents the change to the market for imitation vanilla?

A

Nicholas Huntington-Klein. Created for Albert.io. Copyright 2016. All rights reserved.

B

Nicholas Huntington-Klein. Created for Albert.io. Copyright 2016. All rights reserved.

C

Nicholas Huntington-Klein. Created for Albert.io. Copyright 2016. All rights reserved.

D

Nicholas Huntington-Klein. Created for Albert.io. Copyright 2016. All rights reserved.