Question 1: Suppose that someone told you that an increase in the price of DVD players caused a decrease in the demand for DVDs. Is this what you would predict? Why or why not?
Question 2: Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you would predict? Why or why not?
Question 3: Suppose an economic forecasting group has determined that an increase in the price of orange juice has no effect on the demand for soft drinks? What can you conclude from this information?