2. The price of “CD” changes from $2 to $1.50. What happens to equilibrium price and quantity of “CD player”? (NOTE: we may call “CD” and “CD player” are complementary goods.)

Figure 4-6Refer to Figure 4-6.  The movement from D’ to D could be caused by   a. an increase in the price of a complement.   b. a decrease in income, assuming the good is inferior.   c. a decrease in price.   d. buyers expecting the price of the good to fall in the near future.

How does oil play a role in the price of fertilizer?

1. Which of the following is NOT true of a demand curve? a. It has negative slope. b. It shows the amount consumers are willing and able to purchase at various prices, holding other factors constant. c. It relates the price of an item to the quantity demanded of that item. d. It shows how an increase in price leads to an increase in quantity demanded of a good.

True or False *if the answer is false, expalain it 1. In the market for gasoline, the reason that the equilibrium quantity increased was that the increase in demand was less than the decrease in supply. 2. A fall in the price of iPads would shift the demand curve for iPads to the right. 3. Percentage an increase in the price of good Y is 40% causes a decrease in the quantity demanded of the X by 20%, then good X and good Y are complements. 4. Increasing in the apple price by 40% led to an decrease in the quantity of apple demanded by 60%, then the elasticity of demand is an inelastic type. 5. A price floor set by government will increase the equilibrium price and quantity in a Market

Suppose that a decrease in the price of X results in less of good Y sold. What are X and Y called?    A. substitute goods  B. complementary goods  C. normal goods  D. inferior goods