. The Smith family eats both meat and potatoes on a regular basis and we need to know how the family views these goods. If the price of meats rises and the family eats more potatoes, then the two goods must be a. Substitutes b. Complements c. Inferior d. Normal 2. Which of the following is not a determinant of Supply? a. Prices of resources b. Technology and productivity c. Prices of Complements d. Producers’ expectations e. The number of producers 3. In December, both the price of Christmas trees and the quantity of trees sold rises. Is this a violation of the Law of Demand? Explain your answer 4. Explain the following statement in terms of Supply and Demand: “When a war breaks out in the Middle East, the price of gasoline rises and the price of a used Cadillac falls”
1. The Smith family eats both meat and potatoes on a regular basis and we need to know how the family views these goods. If the price of meats rises and the family eats more potatoes, then the two goods must be
a. Substitutes
b. Complements
c. Inferior
d. Normal
2. Which of the following is not a determinant of Supply?
a. Prices of resources
b. Technology and productivity
c. Prices of Complements
d. Producers’ expectations
e. The number of producers
3. In December, both the price of Christmas trees and the quantity of trees sold rises. Is this a violation of the
4. Explain the following statement in terms of
“When a war breaks out in the Middle East, the price of gasoline rises and the price of a used Cadillac falls”.
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