Econ Macro (book Only)
6th Edition
ISBN: 9781337408745
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 4, Problem 2P
A
To determine
whether Peanut butter and jelly are complementary, substitutes or unrelated goods.
B
To determine
whether Private and public transportation are complementary, substitutes or unrelated goods.
C
To determine
whether Coke and Pepsi are complementary, substitutes or unrelated goods.
D
To determine
whether Alarm clocks and automobiles are complementary, substitutes or unrelated goods.
E
To determine
whether Golf clubs and golf balls are complementary, substitutes or unrelated goods.
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Students have asked these similar questions
Agree or disagree, the price of coffe rices,causing the demand for sugar to decrease. Therefore, the two goods are substitutes.
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If an increase in income results in a decrease in the quantity demanded of a good, then the good is
a luxury.
an inferior good.
a normal good.
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Similar questions
- What happens to demand for normal goods when there is rise in price of substitute goodsarrow_forwardYour research into the vegetable market shows that when the price of vegetables increases by 10%, the quantity demanded of vegetables decreases by 3%. The quantity demanded of meat changes by 18%. You don't know if this is an increase or decrease, but you know that meat and vegetables are substitutes Based on this information, what is the cross-price elasticity of demand for meat?arrow_forwardSuppose when a person’s income increases, his or her demand for mac and cheese decreases. What is the relationship between mac and cheese and income? Mac and cheese are Substitutes Mac and cheese are a Normal good Mac and cheese are an Inferior good Mac and cheese are unaffected by changes in incomearrow_forward
- Explain why you think that the demand of one product may diminish as prices are increasedarrow_forwardIncome elasticity of demand measures how responsive price is to changes in quantity demanded. how responsive quantity demanded is to changes in income. how responsive income is to changes in education levels. how responsive quantity demanded is to changes in price. For the next part, suppose the income elasticity of demand for butter is 0.470.47. That means butter is an inferior good. a complementary good. a normal good. a substitute good. a luxury good.arrow_forwardFind an article in The Wall Street Journal or The Economist that was published after 12/1/23 describing a change in price or quantity or both in some market. Analyze the situation using economic reasoning. A reference must be provided for the article Has there been an increase or decrease in demand? Factors that could shift the demand curve include changes in preferences, changes in income, changes in the price of substitutes or complements, or changes in the number of consumers in the market. Has there been an increase or decrease in supply? Factors that could shift the supply curve include changes in costs of materials, wages, or other inputs; changes in technology; or changes in the number of firms in the market. Draw a supply-and-demand graph to explain this change. Be sure to label your graph and clearly indicate which curve shifts. If done neatly, you can draw the graph by hand and paste it in your documentarrow_forward
- If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of turkey increases, which of the following would we expect to occur? The supply curve for chicken would shift to the left. The demand curve for chicken would shift to the left. The supply curve for chicken would shift to the right. The demand curve for chicken would shift to the right.arrow_forwardWhich of the following would increase the quantity demanded of an Apple iPhone 12? An increase in the price of the Apple iPhone 12. A decrease in the price of the Samsung Galaxy S21 phone. An increase in the price of the Samsung Galaxy S21 phone. A decrease in the price of the Apple iPhone 12.arrow_forwardConsider the market for lattes. If consumers view cappuccinos and lattes as substitutes, what would happen to the equilibrium price and quantity of lattes if the price of cappuccinos decreases? Group of answer choices Both the equilibrium price and quantity would increase. Both the equilibrium price and quantity would decrease. The equilibrium price would increase, and the equilibrium quantity would decrease. The equilibrium price would decrease, and the equilibrium quantity would increase.arrow_forward
- Which of the following will not cause a shift in the demand curve for a good? a) income b) taste c) the price of the good itself d) price of a substitute or complimentary goodarrow_forwardThe price of apples rises from $1.00 per pound to $1.50 per pound. As a result, the quantity of oranges demanded rises from 8,000 per week to 9,500. Calculate the cross-price elasticity of demand and say if the two goods are substitutes or complements.arrow_forwardExercise 3. Tablets and laptops are substitutes. Due to manufacturer related issues, there is a deep shortage of tablet-specific parts. What would you expect to happen to the market (prices, supply, demand, quantity sold) shortly after the parts shortage in for each of the following products: Tablets? Laptops? You can answer each point above with a labeled graph or explain in words, taking into account the differences between a change in the demand (curve) and a change in quantity demanded.arrow_forward
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