BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383
BuyFind

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617383

Solutions

Chapter
Section
Chapter A, Problem 1QP
Textbook Problem

What type of relationship would you expect between the following?

  1. a. Sales of hot dogs and sales of hot dog buns
  2. b. The price of winter coats and sales of winter coats
  3. c. The price of personal computers and the production of personal computers
  4. d. Sales of toothbrushes and sales of cat food
  5. e. The number of children in a family and the number of toys in a family

Expert Solution

(a)

To determine

Relationship between sale of hot dogs and sale of hot dog buns.

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.

Economics Concept Introduction

Complement goods: Complementary goods are those goods that are demanded together.

Expert Solution

(b)

To determine

Relationship between price of winter coats and sale of winter coats.

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.

Economics Concept Introduction

Negative relationship: A negative relationship refers to the situation where two variables move in the opposite directions.

Expert Solution

(c)

To determine

Relationship between price of personal computer and production of personal computer.

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.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

Expert Solution

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

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.

Expert Solution

(e)

To determine

Relationship between the number of children in a family and the number of toys in a family.

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.

Economics Concept Introduction

Positive relationship: A positive relationship refers to the situation where two variables move in the same direction.

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