Suppose the price of ketchup rises dramatically. How would this affect the market price and quantity of hot dog, a ketchup complement? To answer this question, you must think about the supply & demand analysis.

Q: Show the movement of the demand curve based on the data below then identify whether it is a change…

A: Change in demand : In this case there will be shift in the demand curve either it will shifted to…

Q: If we observe an increase in the price of a good and an increase in the amount of the good bought…

A: If initially the demand curve is D and the supply curve is S, the equilibrium price and quantity are…

Q: If two goods are complements, a decline in the price of one will cause an increase in the demand for…

A: The cross elasticity shows the response of the change in the price of one commodity on the demand of…

Q: If coffee and cream are complements, an increase in the price of coffee will cause the demand for…

A: Complementary goods are the goods that are consumed together. In this case cream and coffee are…

Q: Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is…

A: There exists a positive relation between income of a consumer and demand for normal good. There…

Q: Assume there is a decrease in the price of a complement.  This will cause the _______ curve to shift…

A: When the price of the complement decreases, then it will cause the demand to increase and it leads…

Q: A change in which of the following will cause a change in the quantity demanded of coffee? Group of…

A: Change in quantity demanded and change in demand are two different concepts of economics. The change…

Q: A market supply curve shows how the total quantity supplied of a good varies as   a. price of the…

A: The total production process of a firm/industry is an amalgamation of various forces, the optimum…

Q: Movie tickets and popcorn are complements because they are often enjoyed together. When the price of…

A: An object used in combination with another good or service is a complementary good. Usually, when…

Q: If an increase in income results in a decrease in the quantity demanded of a good, then the good is…

A: Consumer income is a factor which affects the demand for a good since it dictates how much of a good…

Q: Does a change in consumers’ tastes lead to a movement along the demand curve or a shift in the…

A: A demand curve is a curve which shows a graphical representation of the relation between the price…

Q: If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of…

A: Susbtitute Goods: The goods that are similar and can be interchangeably used. for eg. Pepsi and…

Q: Explain in your own words the Law of Demand and the Law of Supply. What is the relationship of the…

A: A consumer's desire to buy goods and services, as well as their readiness to pay a price for such…

Q: An increase in the price of a complement good brings about a(an) *   A. increase in quantity…

A: The demand is the quantity demanded of a particular good which is being demanded by the consumers.…

Q: A decrease in the current price of a good would increase the demand for the good. increase the…

A: Demand for a good refers to consumer's desire to purchase that good and their willingness to pay for…

Q: Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close…

A: A Giffen good is a special type of good because it does not follow the law of demand condition when…

Q: The law of demand states that, ceteris paribus, there is an inverse relationship between the price…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: What can cause the market demand curve for oatmeal to shift leftward (a decrease in demand)? An…

A: What can cause the market demand curve for oatmeal to shift leftward (a decrease in demand)?

Q: For each of the following changes, determine whether there will be a change in quantity demanded or…

A: When there is a change in the price of the good, then it causes movement along the demand curve.…

Q: Suppose the price of muffins decreases. (Assume that people regard donuts and muffins as…

A: When two or more goods can be interchangeably consumed, they act as substitutes for each other. The…

Q: Which of the following explains extension of demand? a. Rightward shift of the demand curve b.…

A: Demand refers to the total demand of the good or service demanded by consumers at a given price at a…

Q: An increase in the price of a complement good brings about a(an)        increase in quantity…

A: Complementary Goods Complementary goods are those goods and services which are used together by the…

Q: The Law of supply states that other things remaining the same_________ a. There is a direct…

A: The answer is -  a. There is a direct relationship between price and quantity supplied. The Law of…

Q: Which of the following shows the negative relationship between price and demand of a commodity in…

A: "Demand is the quantity of goods that a consumer is willing and able to purchase at various prices…

Q: The price of guacamole, a complement for tacos, increases. What happens in the market for tacos?…

A: Complement goods are those goods that are consumed with other goods like bread and butter. they have…

Q: If good B is a substitute for good A and the price of good B increases, a. the demand for good A…

A: In a market, if two goods are substitutes of each other, they share direct relation between the…

Q: According to the law of supply, more of a good is desired by consumers as the price falls. less of a…

A: As per the law of supply, there is direct relationship between the price and quantity supplied of a…

Q: Does a change in price lead to movement along the demand curve or to a shift in the demand curve?…

A: Demand curve(DD) shows the relationship b/w the quantity demanded(Qd) and the price(P) of a good.…

Q: What is one consumer food or service for which in the last 10 to 15 years consumers preference has…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: If a good is inferior, a rise in its price will cause people to buy more of it, thus violating the…

A: When people's incomes rise, demand for lesser goods falls. As earnings and the economy improve,…

Q: Which one of the following statements is incorrect? A. A movement along a demand curve relates to…

A: The law of demand states the inverse or negative relationship between the quantity demanded of a…

Q: Explain the following cases through graph.   Pepsi and pizza are complements because they are often…

A: Complimentary goods are the goods that are consumed together such as right and left shoes.

Q: Which of the following describes the relationship between price and quantity demanded according to…

A: According to the Law of DD (demand), the quantity (Q) demanded of a good is negatively related to…

Q: Does a change in price lead to movement along the demand curve or to a shift in the demand curve?…

A: A movement (upward or downward) along the demand curve has occurred when the price of given good…

Q: The law of demand is an inverse relationship between the price and quantity demanded. Explain how…

A: According to the law of demand, there is an inverse relationship between the quantity demanded and…

Q: Which of the following does NOT decrease the demand for Oreos? An increase in the price…

A: There is a huge difference between the change in quantity demanded and the change in the demand for…

Q: A 10 percent increase in income brings about a 15 percent decrease in the demand for a good. What is…

A: "Elasticity is a measure of responsiveness of one variable with respect to another. When the…

Q: Which one of the following statements is correct? A. A rise in the price of a good will cause the…

A: Statement A that "A rise in the price of a good will cause the supply curve of that good to shift to…

Q: Consider the market for pizza in Starkville. Which of the following will shift the demand curve for…

A: Demand for a good represents the quantity of the good that the consumers are willing to buy at a…

Q: The prices of the Ralph Lauren Polo line of clothing are considerably higher than comparable quality…

A: Law of Demand shows the inverse relationship between price of a good and the quantity demanded of it…

Q: If price of a Complement (commodity y) falls, what happens to demand of commodity x

A: The goods or the commodities are the products that satisfy human needs and provides utility to the…

Q: Suppose a decrease in consumer's income causes a decrease in the demand for sausage and an increase…

A: A change in income affects the choice of the consumer. When the purchase of a good does not decrease…

Q: Assume that the price of product X rises by 13 percent and the quantity supplied of X rises by 15…

A: The markets are the place where the buyers of various goods and services tend to meet and interact…

Q: If the price of a product is below the equilibrium price, the result will be A. A shortage of the…

A: Equilibrium is a state in which economic forces like supply and demand are balanced and the…