(a)
Relationship between sale of hot dogs and sale of hot dog buns.
(a)
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.
Complement goods: Complementary goods are those goods that are demanded together.
(b)
Relationship between price of winter coats and sale of winter coats.
(b)
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.
Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.
(c)
Relationship between price of personal computer and production of personal computer.
(c)
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.
Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.
(d)
Relationship between sale of toothbrushes and sale of cat food.
(d)
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)
Relationship between the number of children in a family and the number of toys in a family.
(e)
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.
Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.
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Chapter A Solutions
Macroeconomics (Book Only)
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