8- Refer to the graph below. Assume that TVs and VCRS are two complement goods and that the diagram below represents the demand for VCR3. Which move best describes the impact of a decrease in the price of TVs? (5 points) D' Quantity a. The move from A to C. b. The move from A to B. c. Both moves. Demand first moves from A to B, then from B to C. d. None of the above. Since this is the demand for VCRS, changes in the price of other goods would have no impact on it.

8- Refer to the graph below. Assume that TVs and VCRS are two complement goods and that the diagram below represents the demand for VCR3. Which move best describes the impact of a decrease in the price of TVs? (5 points) D' Quantity a. The move from A to C. b. The move from A to B. c. Both moves. Demand first moves from A to B, then from B to C. d. None of the above. Since this is the demand for VCRS, changes in the price of other goods would have no impact on it.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3QR

See similar textbooks

Similar questions

1. If substitutes are not readily available for a product, it has A. Inelastic demand. B. Elastic demand. ... 1... C. An income effect. D. A substitution effect. 2. A price increase causes a fall in a company's total revenue. This indicates that demand for the company's products is A. Steady B. Elastic C. Inelastic D. Fluctuating 3. Which direction will the demand curve shift if consumers' income rise? A. To the right B. To the left C. Upward D. Downward
1. Consider the market for Netflix Subscriptions. Show graphically and explain using economic intuition, what happens to the market price and quantity in each of the following: a) A popular show “Suits” gets taken out of the platform. b) The price of Hulu subscriptions doubles. c) After the effects of a) and b), you see that the price of Netflix subscriptions increases. d) After the effects of a), what will happen if Netflix doesn’t lower their prices. For each of the following situations, decide whether Shane has diminishing marginal utility. Explain. a) The more economics classes Shane takes, the more he enjoys the subject. And the more classes he takes, the easier each one gets, making him enjoy each additional class even more than the one before. b) Shane likes loud music. In fact, according to him, “the louder, the better.” Each time he turns the volume up a notch, he adds 10 utils to his total utility. c) Shane enjoys watching the show “Stranger Things”. He…
4. An increase in the price of gasoline will most likely cause the demand curve of tyres to change in which direction. A To the left, because gasoline and tyres are substitutes. B To the left, because gasoline and tyres are complements. C To the right, because gasoline and tyres are substitutes. D To the right, because gasoline and tyres are complements. E To the right, because an increase in the price of gasoline makes consumers poorer and thus not willing to pay as much for tyres. 5. For an inferior good, the quantity demanded A Does not change when income rises or falls. B Rises when income falls. C Falls when income falls. D Rises when income rises. E Responds directly to changes in income. 6. The law of diminishing returns states that if increasing quantities of a variable factor are applied to a given quantity of fixed factors, then A The marginal product, the average product and total product of the variable factor will eventually decrease. B Total product will eventually begin…
13. Refer to the diagram below. Good Y U, YA U. Xg XA Good X The budget line shift that moves the consumer's equilibrium from point A to point B suggests: A. a decrease in the quantity demanded for product X. B. a decrease in the demand for product X. C. no change in the demand for product X. D. that X is an inferior good.
1.what action (besides stopping buying apple juice) might Reiko take if the price of apple juice rises above $2.00? 2. What direction does the demand curve slope, ulward or downward?why?how many variables are involved in this curve?
7. State the Law of Demand. Discuss the relationship between Price of the good and its Quantity demanded. Over the last 10 years, price of new models of smart Phones increased by 25%. At the same time, the number of sold phones has increased from 250KD to 400KD. Does this example demonstrate that the Law of Demand is false? Explain why or why not. Use graphs.
20. If there is a rise in price of Galaxy chocolate, people will demand KitKat chocolate and consequently the demand for KitKat chocolate will increase. - Identify the type of demand and explain the reason and relationship.
5. Choosing demand elasticity on a graph Consider the demand for a luxury good such as a yacht. You can plot three different straight lines through the three points X, Y, and Z on this graph. Place the blue line (circle symbol) so that it goes through two of the points and shows the most likely demand curve for this type of good. Hint: Consider the relative elasticities of the different possible demand curves. 120 100 Demand Curve 80 60 40 20 4 10 12 14 16 LUXURY GOODS (Thousands per year) PRICE (Dollars per yacht)
1. Consider the markets for Streaming Services, Cable TV and Pizza a. Complete the following sentences: Streaming Services and Cable TV are are____________(Complements/Substitutes), but Cable TV and Pizza are _(Complements/Substitutes) b. If the price of Streaming________ (increase/decrease), the price of Cable TV will (increase/decrease), c. If the price of Streaming_____ (increase/decrease the price of Pizza will (increase/decrease) d. Because Streaming and Cable TV are close (Complements/Substitutes), the Demand for Streaming is (Elastic/Inelastic)
QUESTION 11 If macaroni and cheese is an inferior good, then an increase in A. the price will cause the demand curve for macaroni and cheese to shift to the left. OB. a consumer's income will cause the demand curve for macaroni and cheese to shift to the right. C. a consumer's income will cause the demand curve for macaroni and cheese to shift to the left. OD. the price will cause the demand curve for macaroni and cheese to shift to the right.
6. Use the graph below to answer this question: Assume that the current price is $70. The seller wants to increase its revenues and has decided to increase the price to $80. Is this a good idea? $100 70 30 20 10 F Demend 10 20 30 40 60 00 70 BO 90 100 Qyemtity of e product (In thousanda) Price
Question 1 a. Identify whether good X and good Y are substitutes or complements , that is find the cross elasticity of demand , if the price of X increases from $ 13 to $ 17 and the quantity demanded for good Y increases from 65 units to 75 units . (You may do it using percentage formula or the average). b. Draw the diagram showing what happens when the price of X increases from $ 13 to $ $ 17 and the quantity demanded for good Y increases from 65 units to 75 units.