Explain, with the aid of a graph, the impact on the equilibrium price and equilibrium quantity in the market for tyres if the following changes occur simultaneously: • The price of rubber used to manufacture tyres increases. • The price of motor vehicles (a complement in consumption for tyres) increases. (Hint: The change occur in equal proportions)
Explain, with the aid of a graph, the impact on the equilibrium price and equilibrium quantity in the market for tyres if the following changes occur simultaneously: • The price of rubber used to manufacture tyres increases. • The price of motor vehicles (a complement in consumption for tyres) increases. (Hint: The change occur in equal proportions)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Explain, with the aid of a graph, the impact on the
the market for tyres if the following changes occur simultaneously:
• The price of rubber used to manufacture tyres increases.
• The price of motor vehicles (a complement in consumption for tyres) increases.
(Hint: The change occur in equal proportions)
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