Debbie listens only to Frank Zappa or Weird Al Yankovic. She currently buys 10 Zappa and 20 Yankovic downloads per month. She would forgo Yankovic downloads for Zappa downloads at the rate of 2-to-1 whenever she has more Yankovic tunes than Zappas, but would forego only 1 Yankovic when the opposite is true. If you offered her 20 Zappa's next month, how many Yankovic downloads would she need to remain at the same level of tune-age satisfaction?
Well, you kind of need a launch point so let's assume that she has only done this for one month so she would have 10 Zappas and 20 Yankovics when you made the offer.
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Zappa Offered
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Zappa on Hand
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Yankovic on Hand
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Purchased
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Purchased
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1
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10
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20
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2
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20
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10
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The demand for energy in the United States is often described as persistently non-cyclical and not sensitive to prices effects. Describe the effect of each of the following on the demand or supply for gasoline. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price when:
a. domestic incomes increase
b. the price of natural gas declines
c. A new refinery is built and comes into service.
d. The average price of automobiles declines.