(a) If the price of movie increases, fewer consumers go to see movies.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Answer

M” method Given the following model, solve by the method of “M”. (see image)

As indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.

Answer 2

Question

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Answer 6

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

Answer 7

Chapter 2A, Problem 1P

To determine

(a) If the price of movie increases, fewer consumers go to see movies.

Answer 8

Expert Solution

Explanation of Solution

We know that the law of demand states that, the quantity of good demanded is inversely related to the relative price of that good. Thus as the price of the movie tickets increases, fewer consumers will go to see the movies. If a consumer has decided to keep a certain portion of his income as entertainment expenses, a rise in the ticket prices will refrain him from going to see the movie. Also, consumers will prefer to go to movies as long as the marginal utility derived from the movies is equal to the price paid for it. As the relationship between price and number of consumers watching the movie is negative, the slope will therefore be negative. Hence, Panel (a) is the most appropriate diagram for this relationship. If the prices are variable, it is measured on vertical axis. The price of movies being an independent variable will be projected on the Y axis (vertical axis) and the number of consumers will be projected on the X axis (horizontal axis), as it is dependent on the price variable. A change in the independent variable will have a direct effect on the dependent variable.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

Answer 13

To determine

(b) More experienced workers typically have higher incomes than less experienced workers.

Answer 14

Expert Solution

Explanation of Solution

A well-made product usually costs more than a poorly made product. Likewise, highly experienced workers are skilled and have up to date knowledge. Thus an experienced worker demands higher salary because of the added value which he gets along with his years of experience. Panel (c) is the suitable image for this kind of relationship. Thus the slope would be a positive slope, as additional experience would result in higher income. Years of experience being an independent variable will be represented on the horizontal axis and the income of the workers, the dependent variable, will be represented on the vertical axis.

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

Answer 19

To determine

(c) Whatever the temperature outside, Americans consume the same number of hot dogs per day.

Answer 20

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no change in the number of hot dogs consumed irrespective of the temperature, the slope will be zero. The temperature being an independent variable will be projected on the horizontal axis and the number of hot dogs on the vertical axis, as the consumption of hot dogs does not change with the temperature.

Answer 21

Expert Solution

Answer 22

Expert Solution

Answer 23

Expert Solution

Answer 24

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

Answer 25

To determine

(d) Consumers buy more frozen yogurt when the price of ice cream goes up

Answer 26

Expert Solution

Explanation of Solution

The law of demand states that as price goes up, demand falls. However, in case of substitute goods, demand for a particular commodity varies directly with the price of a substitute good. Thus, when the price of ice cream goes up consumers would choose a close alternative, which in this case would be frozen yogurt. Panel (c) is the appropriate image for this relation. Thus the slope would be positive. If the prices are variable, it is measured on vertical axis. Hence, the price of ice cream is an independent variable and will be plotted on vertical axis. The demand for frozen yogurt will be plotted on horizontal axis.

Answer 27

Expert Solution

Answer 28

Expert Solution

Answer 29

Expert Solution

Answer 30

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

Answer 31

To determine

(e) Research finds no relationship between the number of diet books purchased and the number of pounds lost by the average dieter.

Answer 32

Expert Solution

Explanation of Solution

The slope for this kind of relationship will be zero and Panel (d) will be appropriate for this relationship. As there is no relationship between the number of diet books purchased and the number of pounds lost by the average dieter, the slope will be zero. The number of diet books purchased is an independent variable will be projected on the horizontal axis and the number of pounds lost on the vertical axis.

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.

Answer 37

To determine

(f) Regardless of its price, Americans buy the same quantity of salt

Answer 38

Expert Solution

Explanation of Solution

Some goods like salt are price inelastic because even if the price of the goods increase people generally keep buying. These goods are termed as necessary goods. Panel (b) illustrates the correct match for this relation.. If the prices are variable, it is measured on vertical axis. Hence, price of salt will be plotted on the vertical axis and the quantity of salt demanded will be plotted on the horizontal axis. Since consumers keep buying salt, irrespective of the change in price, the demand curve will be a vertical line and the slope will be infinity.