1) An increase in the production costs of good X led to a lower equilibrium quantity and a higher price of good X. As a result, the equilibrium quantity of good Y decreased. Furthermore, the percentage change in equilibrium quantity was higher for good X than for good Y. What can you say about these products? A) Both X and Y are Abrasive goods B) Both X and Y are Barber goods C) Both X and Y are Curtius goods D) Both X and Y are Dremen goods E) Both X and Y are Elapsed goods F) Both X and Y are Friedman goods G) Both X and Y are Giffen goods H) Both X and Y are Hash goods I) X is an inferior good relative to Y J) X is a superior good relative to Y K) X and Y are complements L) X and Y are substitutes M) There are exactly two correct answers above and they can be determined based on the available information N) The scenario described in this question is impossible if all agents make rational decisions O) None of the above

Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good

Draw a graph to analyze the market for agricultural products (food). Label your price and quantity axes properly. In your graph, draw a supply curve for agricultural products (food) that obeys the law of supply. Label (S). In the same graph, draw a demand curve for food that obeys the law of demand. Label (D). Identify the market equilibrium point in your graph and label (E). Also, label the equilibrium price (PE) and the Equilibrium quantity (QE): 1. The federal government instituted acreage restriction programs in an attempt to eliminate the surpluses resulting from the price support program. Using the graph above, explain and illustrate how acreage restrictions, if effective might reduce or eliminate food surpluses. Label and explain clearly.

Use the graph to answer the question that follows. Price ($) P₂ Q₂ Q₁ Quantity ·D₂ An increase in income when good A is an inferior good Which of the following best explains the shift from D1 to D2 for Good A in this graph? An increase in the number of consumers in the market An increase in the price of a substitute good for good A A decrease in the number of producing firms An increase in the price of a key input, like oil. S₁ 1

An increase in the price of good B caused an increase in the demand for good C. This indicates that

Answer question 2 please

If the cross-price elasticity of demand for good X with respect to good Y equals 0, how is that value interpreted? These goods are complements, and the quantity demanded of good X increases if the price of good Y decreases. These goods are unrelated, and a change in the price of good Y has no effect on the quantity of good X demanded. These goods are normal goods, and a change in buyers income increases the quantity demanded of good X. These goods are substitutes, and the quantity demanded of good X decreases if the price of good Y decreases.

What is the difference between substitutes and complements? Indicate two goods that are substitutes for each other. Indicate two goods that are complements.

The nature of demand indicates that as the price of a good increases:     suppliers wish to sell less of it.     more of it is produced.     more of it is desired.     buyers desire to purchase less of it.

When an economist states the supply of a product has decreased, he or she has concluded that a) A smaller quantity will be produced at every price b) The price is too high for equilibrium c)a greater quanity will produced at every price d) the price is too low equilibrium. e) demand was too high for producers to make a profit.