3. Market for hamburgers, what happens to supply and demand? 1. Price of chicken sandwiches (a substitute) increases Demand shifts to right 2. Price of French fries (a complement) decreases Demand for hamburgers shifts to the right 3. Price of hamburgers decrease Quantity demanded increases 4. Cockroaches found in multiple restaurants Demand decreases (shifts to the left)

21. The price of chicken increases as the result of higher beef prices. This indicates that a chicken and beef are substitutes b. chicken and beef are complements c the market demand for beef is inelastic. d. the market demand for chicken is elastic.

Price (dollars per pizza) 10 9 The data in the table above give two points on the demand curve for pizza. When the price of a pizza falls from $10 to $9, at the midpoint between these two prices what is the price elasticity of demand? 1. Calculate the Elasticity of Demand 2. Is the item Elastic, Unit Elastic, or Inelastic 3. Would you advise lowering the price? Explain Quantity demanded (pizzas per day) 100 125 Response should have the flowing format. 1. 2. 3.

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8. R 2 00 PRICE (Dollars per unit) 12. Elastic and inelastic supply The following graph shows the supply of a good. E Supply 0 40 30 64 72 QUANTITY (Units) MacBook Pro G Search or type URL & 24 3. 4.