If product X is an input in the production of product Y. In turn product Y is a complement to product Z. We can expect a decrease in the price of X to: Multiple Choice decrease the supply of Y and increase the demand for Z. decrease the supply of Y and decrease the demand for Z. increase the supply of Y and decrease the demand for Z. have no effect on supply and demand increase the supply of Y and increase the demand for Z.

If product X is an input in the production of product Y. In turn product Y is a complement to product Z. We can expect a decrease in the price of X to: Multiple Choice decrease the supply of Y and increase the demand for Z. decrease the supply of Y and decrease the demand for Z. increase the supply of Y and decrease the demand for Z. have no effect on supply and demand increase the supply of Y and increase the demand for Z.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section: Chapter Questions

Problem 2WNG

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Suppose product Y is an input in the production of product Z. Product Z in turn is a substitute for product X. A decrease in the price of Y can be expected to Muitiple Choice decrease the demand for X. increase the demand for X. have no affect on the domand of praduct X. decrease the supply of X. increese the supply of X.
If more and more demanded at the same price it is known as extension of demand. True or false
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Suppose product Y is an input in the production of product Z. Product Z in turn is a substitute for product X. A decrease in the price of Y can be expected to Multiple Choice decrease the demand for X. increase the demand for X. have no effect on the demand of product X. decrease the supply of X. increase the supply of X. Mc Graw Hill 3 of 16 Type here to search
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Goods x and y are perfect substitutes. When the market price of good x is $5/unit, firm F produces 500 units of x. When the price of y rises, 100 consumers of y shift to the consumption of good x. This causes industry analysts to believe that firm f has increased quantity supplied of x by 100 units to meet the higher demand for it. To arrive at this conclusion, the industry analysts are assuming that a. Good x is the only substitute of y available to them. b. Each person will now buy more of x than they did prior to the increase in the price of y. c. Good y is an inferior good. d. The law of supply does not hold for good y. e. The new buyers of good x will, on average, consume one unit each. It’s apparently not b.
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