As the price of GOOD A increases by 20%, the quantity demanded of GOOD B increases by 10%. What is the relationship of the two goods? Show the necessary computation to support your answer.
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As the price of GOOD A increases by 20%, the quantity demanded of GOOD B increases by 10%. What is the relationship of the two goods? Show the necessary computation to support your answer.
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- Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 31.0. When the price is $8.75, the quantity supplied of cat food is 75.0 and the quantity supplied of dog food is 105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.The demand for Good X in New Bedford, MA is given by the following equation: Qd=60-40P+2I-30Py where: Qd is the quantity demanded of Good X P is the price of Good X I is income Pb is the price of Good Y Without performing any calculations, determine if Good X and Good Y are substitutes, complements, or unrelated goods. Explain how you used the function to make this determination. Without performing any calculations, determine if Good X is a normal or inferior good. Explain how you used the function to make this determination. On a clearly labeled graph, plot the demand curve assuming the price of Good Y is $6 and income is $700When the price of butter was "low," consumers spent $5 billion annually on its consumption. When the price doubled, consumer expenditures increased to $7 billion. Recently you read that this means that the demand curve for butter is upward sloping (i. e., price and quantity demanded are directly related, as price increases, quantity demanded also increases). Do you agree? Explain.
- Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $5.50, and the equilibrium quantity is 37.0. When the price is $8.75, the quantity supplied of coffee is 69.0 and the quantity supplied of hot cocoa is 101.0101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places.If individuals were spending more time at home and expected the price of Charmin toilet paper to increase in the future, would this, ceteris paribus, be reflected as a change in demand or a change in supply in the market for Charmin toilet paper – a normal good? Explain. Be sure to clearly identify a textbook variable or determinant that is causing this change. Would this change be an increase or decrease? Explain.��� Would this change result in a surplus or in a shortage in the market for Charmin toilet paper? Explain. Given this surplus or shortage, how will a new equilibrium be established? What do you predict will happen to the equilibrium price and the equilibrium quantity exchanged in the market for Charmin toilet paper? Explain.Suppose that after your income increases, you consume less fast food. This means: Fast food is considered an inferior good. Coke and Pepsi are substitutes. Coke and fried chicken are complements. None of the above.
- Imagine that the table shows the quantity demanded of UGG boots at five different prices in 2021 and in 2022. Which of the following variables could cause the demand for UGG boots to change as indicated from 2021 to 2022? (Check all that apply.) A. The expectation that UGG boots will fall in price. B. A decrease in the price of UGG boots. C. An increase in the number of buyers. D. A decrease in the price of a complementary good. A Price $160 170 180 190 200 Quantity Demanded 2021 8,000 7.500 7,000 6,500 6,000 Quantity Demanded 2022 9,000 8,500 8,000 7,500 7,000Imagine that the table shows the quantity demanded of UGG boots at five different prices in 2021 and in 2022. Which of the following variables could cause the demand for UGG boots to change as indicated from 2021 to 2022? (Check all that apply.) A. The expectation that UGG boots will rise in price. B. A decrease in buyer incomes. C. An increase in the price of UGG boots. D. An increase in the price of a complementary good. Price $160 170 180 190 200 Quantity Demanded 2021 8,000 7,500 7,000 6,500 6,000 Quantity Demanded 2022 7,000 6,500 6,000 5,500 5,000The law of demand implies that, other things remaining the same, A) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded increases. B) as the price of a cheeseburger rises, the quantity of cheeseburgers demanded decreases. C) as income increases, the quantity of cheeseburgers demanded increases. D) as the demand for cheeseburgers increases, the price of a cheeseburger falls. E) as more people demand cheeseburgers, the quantity demanded increases.
- Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $3.50, and the equilibrium quantity is 31.0. When the price is $10.75, the quantity supplied of cat food is 75.0 and the quantity supplied of dog food is 103.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places.Explain why each of the following statements is false: If beer and wine are substitutes, an increase in the price of beer will increase both the demand and supply of wine. An increase in the price of Pepsi would increase the quantity demanded of Coke but not the demand for Coke. An increase in income causes an increase in demand for all goods.Sharon's Quantity Demanded Paolo's Quantity Demanded Price (Dollars per cone) (Cones) (Cones) 16 12 8 5 4 On the following graph, plot Paolo's demand for ice cream cones using the green points (triangle symbol). Next, plot Sharon's demand for ice cream the market demand for ice cream using the purple points (di symbol). Finally, using the blue points ircle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. Paolo's Demand Sharon's Demand Market Demand 12 16 20 24 QUANTITY (Cones) PRICE (Dollars per cone)
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