1. (Chapter 2) Which of the following goods are likely to be classified as substitute goods orcompementary goods? (10 points)a. Cookies and milkb. Pizza Hut pizza and Domino's pizzac. Automobiles and batteriesd. E-mail and first-class maile. Wheaties and Cheerios2. (Chapter 2) Assume that one of the following events occurs. How will each event affect thequantity demanded or demand curve for gasoline? (12 points)a. The market population decreasesb. The price of gasoline fallsc. Buyers' incomes decreased. Buyers expect that the price of gasoline will fall in the futuree. The price of automobiles increasesf. The price of gasoline rises3. (Chapter 3) How will the following changes in price affect a firm's total revenue? (12 points)a. Price rises and demand is inelasticb. Price falls and demand is elasticc. Price rises and demand is unit elasticd. Price falls and demand is inelastice. Price rises and demand is elasticf. Price falls and demand is unit elastic4. (Chapter 3) Suppose the U.S. Postal Service announces an increase in the price of first-classmail in order to generate additonal revenue. What can you infer regarding the price elasticity ofdemand for first-class mail? (10 points)

*As per the question guideline i have solve only the first question and the first three subpart of…

1. (Chapter 2) Which of the following goods are likely to be classified as substitute goods or compementary goods? (10 points) a. Cookies and milk b. Pizza Hut pizza and Domino's pizza c. Automobiles and batteries

1. (Chapter 2) Which of the following goods are likely to be classified as substitute goods or compementary goods? (10 points) a. Cookies and milk b. Pizza Hut pizza and Domino's pizza c. Automobiles and batteries

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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