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Suppose That the Average Price of Refrigerators Has Fallen Over

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Essay

Suppose that the average price of refrigerators has fallen over the past few years,yet the refrigerator companies have offered more and more of them for sale.Does this mean that the supply curve for refrigerators is downward sloping? Explain.


Definitions:

Disposable Income

Post-tax financial resources available for household spending and savings.

Savings

The portion of income that is not spent on consumption or taxes, typically put aside for future use or investments.

Disposable Income

Income available for spending and saving after income taxes have been accounted for.

C + I

An economic formula representing consumer spending (C) plus investment spending (I), components of a country's GDP calculation.

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