assignment no 1

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Q.1. We knows that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?

Q.2. Suppose, as an economist, you are asked to analyze an issue unlike anything you haveever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?

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