Do you agree or disagree with each of the following statements? Briefly explain your answers and illustrate each with supply and demand curves.   An econ instructor purchases 5 new pairs of Calvin Klein jeans after seeing a post on Kim Kardashian’s Instagram lauding the quality of them. This is a change in quantity demanded.   A shift in demand causes the price of a good to fall. The shift must have been a decrease in demand.   The price of good A falls. This causes an increase in the price of good B.  Therefore, goods A and B are complements.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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  1. Do you agree or disagree with each of the following statements? Briefly explain your answers and illustrate each with supply and demand curves.

 

  1. An econ instructor purchases 5 new pairs of Calvin Klein jeans after seeing a post on Kim Kardashian’s Instagram lauding the quality of them. This is a change in quantity demanded.

 

  1. A shift in demand causes the price of a good to fall. The shift must have been a decrease in demand.

 

  1. The price of good A falls. This causes an increase in the price of good B.  Therefore, goods A and B are complements. 
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