CHapter three
Hot dogsHot dogs and burgersburgers are substitutessubstitutes. If the price of a hot doga hot dog decreasesdecreases, the demand for burgersburgers will
(if they are both substitutes they still both go down in terms of demand)
normal good
as demand increases income increase
low fat mil and cream are
complements in production for dairy
equilibrium quantity formula
(a minus−c)/(b+ d).
The equilibrium price formula
( a X d + b X c) / (b+d)
Substitutes in production
Leather purses and leather shoes are _______. suvs and pickup trucks
inferior good
a good when demand decrease as income increases
Competitive markets have
many sellers and exist for goods services, money, factors of production and inputs
uxury car makers forecast a decrease in households' incomes and an increase in the ease in which credit can be obtained. You predict that the demand for luxury cars today _______.
might increase, decrease, or remain the same
If any factor that influences selling plans other than the price changes, then a ______ the supply curve occurs.
movement downdown along; shift of
diet coke and regular coke are
substitutes for consumers and substitutes for production for producers
We observed a fall in the price of margarine and an increase in the quantity of margarine that producers sell. The most likely explanation is that ______.
the law of supply applies to margarine, but some other influence on selling plans has increased the supply of margarine.