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Scenario 5-1 Suppose That When the Average College Student's Income Is $10,000

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Scenario 5-1
Suppose that when the average college student's income is $10,000 per year,the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80.Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie,the quantity demanded of Sue's Subs increases from 80 to 100.Suppose also that when the average student's income increases to $12,000 per year,the annual quantity demanded of Patty's Pizza increases from 50 to 60.
-Refer to Scenario 5-1.What can you deduce about the type of good Patty's Pizza is and about the relationship between Patty's Pizza and Sue's Subs?


Definitions:

Convergent Thinking

A cognitive process in which a single, correct solution to a problem is identified through logical reasoning.

Divergent Thinking

A thought process used to generate creative ideas by exploring many possible solutions.

Means-end Analysis

A problem-solving technique that involves breaking down a problem into smaller parts and addressing these parts to reach a solution.

Working Backward

A problem-solving strategy where the solver starts from the desired goal and works in reverse order to reach the initial problem state.

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