
(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
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.
Want to see more full solutions like this?
Chapter A Solutions
Bundle: Microeconomics, 13th + Aplia, 1 Term Printed Access Card
- 17. Given that C=$700+0.8Y, I=$300, G=$600, what is Y if Y=C+I+G?arrow_forwardUse the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all. Write explanation in paragraphs and if you use currency use USD currency: 10. What is the mechanism or process that allows the expenditure multiplier to “work” in theKeynesian Cross Model? Explain and show both mathematically and graphically. What isthe underpinning assumption for the process to transpire?arrow_forwardUse the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all. Write it all in paragraphs: 2. Give an overview of the equation of exchange (EoE) as used by Classical Theory. Now,carefully explain each variable in the EoE. What is meant by the “quantity theory of money”and how is it different from or the same as the equation of exchange?arrow_forward
- Zbsbwhjw8272:shbwhahwh Zbsbwhjw8272:shbwhahwh Zbsbwhjw8272:shbwhahwhZbsbwhjw8272:shbwhahwhZbsbwhjw8272:shbwhahwharrow_forwardUse the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all:arrow_forwardUse the Feynman technique throughout. Assume that you’reexplaining the answer to someone who doesn’t know the topic at all: 4. Draw a Keynesian AD curve in P – Y space and list the shift factors that will shift theKeynesian AD curve upward and to the right. Draw a separate Classical AD curve in P – Yspace and list the shift factors that will shift the Classical AD curve upward and to the right.arrow_forward
- Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all: 10. What is the mechanism or process that allows the expenditure multiplier to “work” in theKeynesian Cross Model? Explain and show both mathematically and graphically. What isthe underpinning assumption for the process to transpire?arrow_forwardUse the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all: 15. How is the Keynesian expenditure multiplier implicit in the Keynesian version of the AD/ASmodel? Explain and show mathematically. (note: this is a tough one)arrow_forwardUse the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all: 13. What would happen to the net exports function in Europe and the US respectively if thedemand for dollars rises worldwide? Explain why.arrow_forward
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc





