For each of the following pairs of goods, identify if they are substitutes or complements and use a graph to illustrate how the change described impacts the markets for both goods or services. Gasoline and sport utility vehicles: The price of gasoline increases. Taking a train or plane between NYC and Washington, DC: The price of airfare increases. A smartphone and a Verizon data plan: The price of a monthly data plan increases.

Q: The price and quantity demanded of a particular smartphone app are shown in the table below.…

A: The curve that depicts various quantities of goods and services being demanded at various price…

Q: What are the influences on buying plans that change demand, and do these influences increase or…

A: The elasticity of demand is the reaction of demand due to change in price of goods and services,…

Q: Draw a supply and demand curve for peanut butter. The price of jelly rises significantly, what…

A: Complementary Goods:  Complementary goods are those goods which used together. If the price of one…

Q: Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is…

A: There exists a positive relation between income of a consumer and demand for normal good. There…

Q: Suppose Pepsi and coke are substitutes. A fall in the price of Pepsi will cause

A: Related goods are of two types:-substitute goods and complements. Substitutes goods are those goods…

Q: The graph shows the demand for and supply of potato chips.   Draw a curve that shows the effect of a…

A:

Q: 1. The movement from point A to point B on the graph is caused by   a.  an increase in price.   b.…

A: Demand is made of different combinations of price and quantity demanded.

Q: The following table presents the weekly demand and supply in the market for sweatpants in Dallas.…

A: Market equilibrium in economics occurs when the amount of a product or service available (supply) is…

Q: Explain all the reasons why a decrease in a product’s price would lead to an increase in purchases.

A: Demand for a commodity is based on the desire to have that commodity backed by the ability to pay…

Q: The following table gives data on the price of rye and the number of bushels of rye sold in 2017 and…

A: Given:  Year Price Quantity 2017 $3 8,000,000 2018 $2 12,000,000 To find: Change in Qd of…

Q: For consumers, computers are a complement to computer software. Suppose the price of a computer…

A: Products that are used or consumed combinedly are called complementary goods. Under this the…

Q: Does a change in price lead to movement along the demand curve or to a shift in the demand curve?…

A: Demand curve(DD) shows the relationship b/w the quantity demanded(Qd) and the price(P) of a good.…

Q: The law of demand is an inverse relationship between the price and quantity demanded. Explain how…

A: According to the law of demand, there is an inverse relationship between the quantity demanded and…

Q: Relationship between changes in price and  corresponding changes in quantity that consumers will…

A: Change in price will leads to change in demand.

Q: Explain all the reasons why a decrease in the price of a product would lead to an increase in…

A: The law of demand says that there is an inverse association between the price of a service and…

Q: Suppose there is a product whose price is increasing but it has no impact on quantity demand…

A: If an increase in price does not change quantity demanded, it means the demand curve is vertical at…

Q: The figure below illustrates the market for pumpkins just before the harvest for Halloween.…

A: An elastic demand is one in which the change in quantity is demanded due to a large change in price.…

Q: The following table presents the monthly demand and supply in the market for sweatpants in Miami.…

A: Quantity demand and Quantity supply are two different parameters from the viewpoint of consumer and…

Q: The following table gives data on the price of rye and the number of bushels of rye sold in 2019 and…

A: Price elasticity of demand is the responsiveness of quantity demanded to a change in the price. The…

Q: Question #1: On the news there has been outrage over the price of Epipens, a medication needed for…

A: A demand curve is a graphical representation of the relationship between the price of a good or…

Q: Pepsi and burger are complements because they are often enjoyed together. When the price of pepsi…

A: Complements goods are those goods which are used together. Like pen and ink, in the Complements…

Q: Explain all the reasons why decrease in the products price will lead to an increase in purchases

A: Demand: Demand is a desire for a commodity, the ability of the consumer to pay for it, and…