Mr. Smith has a daily demand for the famous homemade sausage in beer garden GoedKoop Q,- 30 - 2P, + 4P 061 [+] In which P, is the price for the sausage, P, is the price for Goedkoop's home brewed beer, and I is Smith's daily income. Suppose that P,= 12, P,6,1= 40 Are beer and sausages complements or substitutes for Mr Smith? Currently Selected : B A Substitutes B Complements C Neither substitutes nor complements D. Uncertain
Mr. Smith has a daily demand for the famous homemade sausage in beer garden GoedKoop Q,- 30 - 2P, + 4P 061 [+] In which P, is the price for the sausage, P, is the price for Goedkoop's home brewed beer, and I is Smith's daily income. Suppose that P,= 12, P,6,1= 40 Are beer and sausages complements or substitutes for Mr Smith? Currently Selected : B A Substitutes B Complements C Neither substitutes nor complements D. Uncertain
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Mr. Smith has a daily demand for the famous homemade sausage in beer garden GoedKoop
Q = 30 - 2P, + 4P+ 0 61
In which Pe is the price for the sausage, P.
is the price for Goedkoop's home brewed beer, and I is Smith's daily income.
Suppose that P= 12, P=6,1= 40
Are beer and sausages complements or substitutes for Mr. Smith?
Currently Selected : B
A Substitutes
B Complements
C Neither substitutes nor complements
D Uncertain

Transcribed Image Text:QuestionS
FLAG OESTION
...
a city with a medium sized population, the oqulibrium price for a city bus ticket is $1 00, and the number of riders each day is 9,600. The short-run price elasticity of demand is 050,
and the short-run elasticity of supply is 1.0.
Estimate the short run linear supply and deomand curves for bus tickets.
Demand curve Q, bP
Supply curve Qc + dP
Hint bis negatve
a1 15360
b (2
d.
0600
Answers 1-4
1. 15360
2.
3. 0
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