Consider the number of options you had to quench your thirst at the various locations. What do you notice about the price of the soda as the number of options (substitutes) increased?
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Consider the number of options you had to quench your thirst at the various locations. What do you notice about the price of the soda as the number of options (substitutes) increased?
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- Relationship between changes in price and corresponding changes in quantity that consumers will demand isYour research into the vegetable market shows that when the price of vegetables increases by 10%, the quantity demanded of vegetables decreases by 3%. The quantity demanded of meat changes by 18%. You don't know if this is an increase or decrease, but you know that meat and vegetables are substitutes Based on this information, what is the cross-price elasticity of demand for meat?Explain why you think that the demand of one product may diminish as prices are increased
- What happens to demand for normal goods when there is rise in substitute goodsis the measure of the percent change in the quantity of a good demanded divided by the percent change in price of that goodSuppose you like to make, from scratch, pies filled with banana cream and vanilla pudding. You notice that the price of bananas has increased. As a result, what will happen to your demand for vanilla pudding? Explain.
- Refer to Figure 4-1. The movement from point A to point B on the graph is caused by a. an increase in price. b. a decrease in price. c. a decrease in the price of a substitute good.What is one consumer food or service for which in the last 10 to 15 years consumers preference has actually increased, and still, the price has decreased. Based on all the supply and demand determinants, what is a possible reason that could cause the decrease in the price of the suggested good.What happens to demand for normal goods when there is rise in price of substitute goods
- Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand? O Sports car O Amputation procedures for diabetes sufferers The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.The law of demand is an inverse relationship between the price and quantity demanded. Explain how the law of demand related to a recent two purchases that you had to make.Find an article in The Wall Street Journal or The Economist that was published after 12/1/23 describing a change in price or quantity or both in some market. Analyze the situation using economic reasoning. A reference must be provided for the article Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts. If done neatly, you can draw the graph by hand and paste it in your document
