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17-10-2022
Business

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1. If trumpets are normal goods, explain what will happen to price and quantity of trumpets when income in the economy increases.

2. Now assume that there are many new trumpet producers in the market. Explain what will happen to the price and quantity of trumpets in the market.

3. If there are few substitutes for trumpets, would the elasticity of demand for trumpets be relatively elastic or relatively inelastic?

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