Question

4) Draw the demand curves for the following goods. Show the effect of an increase in the price of the first good, and also show what will happen to the demand for the second good, and briefly explain why? (Hint: two graphs are needed; one for each good)-You will need more room to draw the models and answer this question. Use another sheet of paper and attach it. a. hamburger and ketchup. b. Coca-Cola and Pepsi, C. camera and film. d. golf clubs and golf balls. e. a skateboard and a razor scooter. What would be the effect of each of the following on the supply of salsa in the United States? In each case, identify the responsible determinant of supply. 5) Tomato prices skyrocket. a. b. Congress places a 26 percent tax on salsa. c. Development of a new, faster vegetable chopper. d. J. Lo, Beyonce, and Adam Sandler each introduce a new brand of salsa. e. A change in the price of salsa, the price decreases. 6) The following graph shows three market supply curves for cantaloupe. Compared to point A which point represents: a. an increase in quantity supplied? b. an increase in supply? c. a decrease in quantity supplied? d. a decrease in supply? Quandty of Cantaloupes per Year anud

Answer 1

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yc c, Pares (neus demand (iniial damamd CLUve dty due to price incroaseim coca cola -fea demand pcople dhipt papi Clading to me deareases nol the to inonensimgdemanmd Lesgt hift n stemand Saluction gien in ta) complementany goods applind to Can be all Lamera& fitm batis golf_cluls and See diagrams) applad to can be delution goods Bubetitute ayos aleuote CSe dingam kateboard amd 7

midarty Camera prrce Po CAMERAT nistiadamant neus -donaasad &4 FILM

Golf balls (d of club and PD Aumand Price RT laitàt demand neu demend o balls

GAT Drayor olcostar kateboaud dand Pree Po (Demand Skateboasd neus demand utral -donand Curve Curve SCoote