Relationship between sale of hot dogs and sale of hot dog buns.

Question

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Answer 1

Question

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

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2. a) Consider a market where one firm (firm 1) currently produces, but a second firm (firm 2) is intending to enter and sell an identical product. The market has inverse demand given by p = 40 – Q, where Q is the total output sold in the market. Firm 1 has a marginal cost of 16 and firm 2 has a marginal cost of c < 16, with no fixed cost for either firm. Firm 2 has a choice of competing on price or quantity, with firms making their choices simultaneously (i.e. the market will be either a Bertrand or Cournot duopoly). If you were advising firm 2 on entering this market, how would you advise it to compete? To what extent would the size of firm 2’s cost advantage affect your advice? b) Now assume that firm 2 is aware that other firms are considering entering the market, so the market may over time change from a duopoly to an oligopoly with more than two firms. This would not change the nature of competition (i.e. any additional firms would set price or quantity in line with the first…

Answer 2

Question

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

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Answer 3

Question

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

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

Answer 4

Question

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

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 A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

Answer 6

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

Answer 7

Chapter A, Problem 1QP

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

Answer 8

(a)

Expert Solution

Explanation of Solution

The relationship between hot dogs and hot dog buns is that both are complementary goods. The goods that are demanded together are called compliment goods, and an increase in the price of one good leads to a decrease in the demand for the other.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

Answer 13

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

Answer 14

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

Answer 15

(b)

Expert Solution

Explanation of Solution

There is a negative relationship between price of winter coats and sale of winter coats because when the price of coat increases, people would demand less quantity. Thus, increase in price reduces the quantity of coat sale and vice versa.

Answer 16

(b)

Expert Solution

Answer 17

(b)

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

Answer 20

(c)

To determine

Relationship between price of personal computer and production of personal computer.

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

Answer 21

(c)

To determine

Relationship between price of personal computer and production of personal computer.

Answer 22

(c)

Expert Solution

Explanation of Solution

Quantity of production depends upon the price of that good. Thus, there is appositive relationship between price of computer and quantity of computer produced. Increase in price of computer leads to increase in the production of computer or quantity supply of computer in the market.

Answer 23

(c)

Expert Solution

Answer 24

(c)

Expert Solution

Answer 25

Expert Solution

Answer 26

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

Answer 27

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

Answer 28

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

Answer 29

(d)

Expert Solution

Explanation of Solution

There is no relationship between sale of toothbrush and sale of cat food because the sale of toothbrush does not make any effect on the sale of cat food.

Answer 30

(d)

Expert Solution

Answer 31

(d)

Expert Solution

Answer 32

Expert Solution

Answer 33

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

Answer 34

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

Answer 35

(e)

Expert Solution

Explanation of Solution

The number of children in a family is directly related to the number of toys in a family because increasing number of children in a family results in an increase in the number of toys in the family.