Draw the supply and demand curve for pencils. Gwinnett county provides every student with a laptop at school. What happens to the supply or demand for pencils. Why?
Demand refers the total amount of goods and services that are willing and able to buy at the particular price level. For example, the demand for egg is obtained that the quantity of egg is purchased at price $6.
Supply refers to the level of output that produced at the particular price level. For example, the supply of egg is obtained that the quantity of egg is produced at price $6.
Substitute goods are those goods that are used for the same purpose. For example, tea and coffee are substitute goods. The cross price elasticity of demand is positive for substitute goods.
Complementary goods are those goods that are demanded together. Without one good, the good is useless. Example for complementary good is pen and ink. Both the goods are demanded together. The cross price elasticity of demand for complementary good is negative.
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