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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
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

(a)

To determine

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

Explanation

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.

Concept

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

(b)

To determine

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

Explanation

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.

Concept

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

(c)

To determine

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

Explanation

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.

Concept

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

(d)

To determine

Relationship between sale of toothbrushes and sale of cat food.

Explanation

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)

To determine

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

Explanation

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.

Concept

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

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