Which of the following questions is a type that tools of econometrics are meant to answer? A. If goods A and B are substitutes and the price of good A increases by KSH 10, by how much will the quantity demanded of good B change by? B. If goods A and B are substitutes and the price of good A increases, how will this affect the demand for good B? C. If an income increase causes the sales of good A to fall, everything else held constant, what type of good is good A? D. Everything else the same, would the price of good A be higher in a competitive industry or a monopolistic industry?

Replacement car parts are an inferior good. The country is going through a recession.  Simultaneously, the price of a key raw material used in making replacement car parts goes down.  What happens to the price and output of replacement car parts? Briefly explain. Briefly explain. In addition, show this graphically by choosing the appropriate graph from the four graphs (A - D) in the link below.

In terms of our shift variables of demand and supply, how are each of the following pairs related? Which side of the market for the second good (supply or demand) is affected by the change in the price of the first good.   a. wheat and breadb. butter and breadc. peanuts and peanut butter

What does the demand curve shows the relationship between?

The market for cellular phones has seen a combination of improving telecommunication technology and rising consumer incomes. Suppose you are told that the price of cellular phones decreased over the past five years. The decreasing prices of cellular phones, a normal good, implies that the magnitude of:   A. he rightward shift of the demand curve is greater than that of the rightward shift of the supply curve   B. The leftward shift of the demand curve is greater than that of the rightward shift of the supply curve   C. The rightward shift of the demand curve is less than that of the rightward shift of the supply curve   D. The rightward shift of the demand curve is less than that of the leftward shift of the supply curve

The law of demand implies that, other things remaining the same,A) as the demand for cheeseburgers increases, the price of a cheeseburger will fall.B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will decrease.C) as income increases, the quantity of cheeseburgers demanded will increase.D) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded will increase.

In the graph, an increase in supply would cause a move from which equilibrium point to another, other things being equal. Price P P E₂ a) A decrease in input prices b) An improvement in technology c) An increase in input prices d) An increase in consumer income E O OTO Q₂ Quantity of good X Which of the following might cause a shift from S1 to S₂? Di D:

Cups of coffee and donuts are complements. Both have inclastic demand. A hurricane destroys half the coffee bean crop. Use appropriately labeled diagrams to answer the following questions. a. What happens to the price of coffee beans? b. What happens to the price of a cup of coffee? What happens to total expenditure on cups of coffee? c. What happens to the price of donuts? What happens to total expenditure on donuts?

According to the law of supply, assuming other factors are held constant: as the supply of bread increases, the price of bread will also increase. O as the supply of bread increases, the price of bread will decrease. as the price of bread increases, the quantity of bread supplied will increase. as the price of bread increases, the quantity of bread supplied will decrease.

If the graph below represents the demand for tickets to broadway musicals, an increase in the price of a ticket to a broadway musical is illustrated by: Price A C B D1 D2 Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a a movement along D₁ from point B to point A. b a movement along D₁ from point A to point B. с a shift from point A on D₁ to point C on D2. d a shift from point C on D₂ to point B on D1.