Describe the movement of demand and supply curves

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1. Use cheap Australian wine that costs below $10 a bottle and premium wine that costs more than $100 a bottle to explain what an inferior good is compared to normal good.

2. State another pair of related products as examples of inferior and normal good .

3. Assuming an increase in income, use the Demand Supply model for cheap Australian wine shown below to

- describe the movement of the demand/supply curves if any,

- indicate what the new equilibrium price and quantity may be.

Reference no: EM133280163

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