a. The law of demand states there is a(n) ________________________relationship b

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a. The law of demand states there is a(n) ________________________relationship between the ________________ of X and the _________________________ of X, ceteris paribus Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the demand for product X. b.____________Decrease in income, assume product X is a normal good c.____________ Decrease in the price of Y, products X and Y are substitutes d.____________Increase in the price of Z, products X and Z are complements e.____________Buyers expect the price of X to decrease in the near future f.____________Decrease in the price of X
G. Children are inferior “goods.” Do you agree or disagree? Explain your answer. H .During the real estate boom between the early 2000s and 2007 the prices of homes rose year after year yet people purchased more homes year after year. A TV commentator recently said, “This economic event was an exception to the law of demand.” Do you agree or disagree? Explain your answer.
Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the supply of product X. I. ____________Increase in the price of resources used to produce product X J.____________Technological advance increases labor productivity K.___________Decrease in the number of firms producing product X L.____________Decrease in the number of people buying product X M.____________Decrease in the price of X N. Congress increases the excise tax on a gallon of gasoline by $1.00. Given this change in economic circumstance, ceteris paribus, a.the demand for gasoline would ______________________________, b.the supply of gasoline would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the gasoline market. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for gasoline P: _______________ d. Q: _______________ N. Goods X and Y are complements in consumption. Higher production costs increase the price of good X. Given this change in economic circumstance, ceteris paribus, a.the demand for good Y would ______________________________, b.the supply of good Y would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the market for good Y. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for good Y P: _______________ d. Q: _______________
a. The law of demand states there is a(n) ________________________relationship between the ________________ of X and the _________________________ of X, ceteris paribus Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the demand for product X. b.____________Decrease in income, assume product X is a normal good c.____________ Decrease in the price of Y, products X and Y are substitutes d.____________Increase in the price of Z, products X and Z are complements e.____________Buyers expect the price of X to decrease in the near future f.____________Decrease in the price of X
G. Children are inferior “goods.” Do you agree or disagree? Explain your answer. H .During the real estate boom between the early 2000s and 2007 the prices of homes rose year after year yet people purchased more homes year after year. A TV commentator recently said, “This economic event was an exception to the law of demand.” Do you agree or disagree? Explain your answer.
Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the supply of product X. I. ____________Increase in the price of resources used to produce product X J.____________Technological advance increases labor productivity K.___________Decrease in the number of firms producing product X L.____________Decrease in the number of people buying product X M.____________Decrease in the price of X N. Congress increases the excise tax on a gallon of gasoline by $1.00. Given this change in economic circumstance, ceteris paribus, a.the demand for gasoline would ______________________________, b.the supply of gasoline would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the gasoline market. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for gasoline P: _______________ d. Q: _______________ N. Goods X and Y are complements in consumption. Higher production costs increase the price of good X. Given this change in economic circumstance, ceteris paribus, a.the demand for good Y would ______________________________, b.the supply of good Y would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the market for good Y. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for good Y P: _______________ d. Q: _______________
a. The law of demand states there is a(n) ________________________relationship between the ________________ of X and the _________________________ of X, ceteris paribus Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the demand for product X. b.____________Decrease in income, assume product X is a normal good c.____________ Decrease in the price of Y, products X and Y are substitutes d.____________Increase in the price of Z, products X and Z are complements e.____________Buyers expect the price of X to decrease in the near future f.____________Decrease in the price of X
G. Children are inferior “goods.” Do you agree or disagree? Explain your answer. H .During the real estate boom between the early 2000s and 2007 the prices of homes rose year after year yet people purchased more homes year after year. A TV commentator recently said, “This economic event was an exception to the law of demand.” Do you agree or disagree? Explain your answer.
Indicate whether the following change in economic circumstance, ceteris paribus, will increase, decrease, or have no effect on the supply of product X. I. ____________Increase in the price of resources used to produce product X J.____________Technological advance increases labor productivity K.___________Decrease in the number of firms producing product X L.____________Decrease in the number of people buying product X M.____________Decrease in the price of X N. Congress increases the excise tax on a gallon of gasoline by $1.00. Given this change in economic circumstance, ceteris paribus, a.the demand for gasoline would ______________________________, b.the supply of gasoline would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the gasoline market. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for gasoline P: _______________ d. Q: _______________ N. Goods X and Y are complements in consumption. Higher production costs increase the price of good X. Given this change in economic circumstance, ceteris paribus, a.the demand for good Y would ______________________________, b.the supply of good Y would ______________________________. Use your answers to (a) and (b) to illustrate graphically what happens in the market for good Y. Predict the direction of change in equilibrium price (P) and quantity (Q). c.Market for good Y P: _______________ d. Q: _______________

Explanation / Answer

a) Inverse , quantity demanded and price

b) Decrease in demand (because demand for normal goods increase with increase in income and vice versa)

c) Decrease in demand of X (because substitute goods are goods for which demand increases for increase in price of other goods.)

d) Decrease in demand ( because complementary goods are goods for which demand increases with decrease in price of other goods.)

e) Decrease in demand ( because expectation about future also affects demand)

* Can do only thse many sub-parts for solution to other parts please post as a different question. Please upvote if possible

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