Give an example of a complementary and a substitute product in consumption for each of the following items: Bacon Tennis racquets Coffee Automobiles Content information: Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise. Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

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Answer 1

Question

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

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Answer 2

Question

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

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Answer 3

Question

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

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Answer 4

Question

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

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Answer 5

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

Answer 6

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

Answer 7

Chapter 3, Problem 5P

To determine

Give an example of a complementary and a substitute product in consumption for each of the following items:

Bacon

Tennis racquets

Coffee

Automobiles

Content information:

Complement goods are often used together. For example, car and petrol. As price of a complementary good rise, demand for other goods falls. When price of a complementary good falls, demand for the other goods rise.

Substitute goods are used in place of each other. If the price of a substitute good rises, demand for the other good rises as people always prefer the cheaper good. On the other hand, as price of the substitute good falls, demand for its related goods also falls. E.g. tea and coffee.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 3 - Prob. 3.1LO Ch. 3 - Prob. 3.2LO Ch. 3 - Explain the law of supply Ch. 3 - Prob. 3.4LO Ch. 3 - Prob. 3.5LO Ch. 3 - Prob. 3.1SC Ch. 3 - Prob. 3.2SC Ch. 3 - Prob. 3.3SC Ch. 3 - Prob. 3.4SC Ch. 3 - Prob. 3.5SC

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Chapter 3 Solutions