Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
13th Edition
ISBN: 9781337742412
Author: Roger A. Arnold
Publisher: Cengage Learning
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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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Chapter A Solutions
Bundle: Macroeconomics, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
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