When Good A and Good B are complements in production and there is a decrease in the price of Good A, what happens in Good B's market?

Q: If the price of a good is above equilibrium price then,

A: Market equilibrium is a stable situation in which the quantity demanded by the consumers and the…

Q: When analyzing a market, how do economists deal with the problem that many factors that affect the…

A: To examine the study the change in the different factors affecting the market easily, economists…

Q: Which situation best illustrates an effect of the law of supply?

A: Micro economics refers to the branch of economics that deals with individuality instead of the…

Q: Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium…

A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: You attend a movie and notice that there are hundreds of empty seats.what might you conclude about…

A: Equilibrium is attained in the market at the point where the demand and supply intersect each other.…

Q: What if the price at a given time was less than the equilibrium price?

A: Equilibrium occurs at that point where quantity demanded is equal to quantity supplied. The price at…

Q: Why an equilibrium is defined as a price?

A:

Q: If costs of production of good X increases what happens with supply or demand for good X? Explain!

A: Cost of production is the monetary value incurred on factor of production used to produce goods and…

Q: Describe the role of prices in market economies?

A: In economics, the main goal of all economic agents is to satisfy their unlimited desires and wants…

Q: How does the interaction of demand and supply keep a market in balance, at least approximately and…

A: Demand for a commodity is the desire backed by ability and willingness to pay the given price during…

Q: Suppose the demand decreases while supply remains constant. What do you predict happens to the…

A: Given that the demand decreases while the supply remains constant. This would lead to a leftward…

Q: How to draw supply and demand curves for good 1 and good 2, respectively?

A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…

Q: What happens when price is not allowed to change with market forces?

A: A market force is considered as one of the factors that have some ability to affect change in a…

Q: Studying the determination of prices in individual markets is primarily a concern of_____________.…

A: Study of economics can be divided into two branches, microeconomics and macroeconomics.

Q: When The price of good X falls then the demand for Good Y rise.  State where Good X and Good Y are…

A: # substitute goods are those goods which can be used on place of each other and on the other hand…

Q: If the economy goes into recession and income falls, what happened to inferior goods?

A: Inferior goods: The inferior goods are those goods whose demand increases when consumers’ income…

Q: If Goods A & B are complements, and increase in the price of Good B will:

A: Goods are complements means that two goods are used together in some specified proportions like like…

Q: Which one of the following pairs of commodities is an example of substitutes?

A: To find : Example of substitutes.

Q: the price of good X is $10 and the price of good Y is $5, how much of good X can the consumer…

A: We know that the equation of budget line is:  Px Qx + Py Qy = M               Where, Px = Price of…

Q: DRAW # 9 AND SHOW WHAT HAPPENS WHEN WE SLIGHTLY RAISE THE PRICE ON THE MARKET EQUILIBRIUM CURVE-

A: Equilibrium is achieved at the output level where quantity demanded equals quantity supplied.

Q: If the price of the good on the vertical axis rises

A: Budget line shift because of change in the level of consumer income. And it become steeper or…

Q: if good F and G are substitutes and the cost of a factor of production used in the production of…

A: When one good could in turn be used in place of another good and could be produced while making use…

Q: For society, a good is not scarce if  a.firms are producing the goods at full capacity b.  all…

A: The economics as a study is considered to be a very vast area. In economics, the major idea is that…

Q: The cost of production of a good can increase, which will cause profits to decrease. Will it cause…

A: If the cost of production rises, then the supplier will face increasing costs for every unit of…

Q: Why doesn’t the change to equilibrium happen immediately when there is surplus in the market?

A: Demand: It refers to the quantity of a commodity that the consumer is willing and able to purchase…

Q: 1. If the demand curve for product A moves to the right, and the price of product B increases, it…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If the demand for coffee decreases as income decreases, coffee is a(n): complementary…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Given a market equilibrium point, explain, using the concepts of demand and supply, how it is…

A: To obtain market equilibrium presence of both demand and supply curves are most essential. Demand…

Q: How price reaches equilibrium? Give an example

A: The demand curve shows the association between the amounts of a commodity demanded by the consumer…

Q: Consider the market for chicken burger. For each of the events listed here, identify which of the…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: How price equilibrium is achieved?

A: Concept At the point where the AD and AS curves connect, macroeconomic equilibrium leads to wastage…

Q: y are willing to pay for the next unit of the good.     (b) Represents the value of that unit of…

A: The equilibrium is defined as point where demand is equal to supply.The market demand curve…

Q: When a person goes to the grocery store to buy food, there is no auctioneer calling out prices for…

A: The market is in equilibrium at the point where the demand and supply is equal. If the demand is…

Q: When a market is in equilibrium, which of the following is not correct Select one: a. the price…

A: Market is in equilibrium when at a certain price, quantity demanded equals quantity supplied.

Q: Let’s assume that a severe hurricane destroys many shrimp farms along the Gulf Coast of Louisiana.…

A: Here, it is given that the impact of a severe hurricane led to destroy many shrimp farms in the Gulf…

Q: Describe the role of prices in the market economy?

A: Market economy: the production of goods and services is directed by the laws of supply and demand in…

Q: The price of X is $20 and the price of Y is $40. Y. 30 A Uz U1 24 40 Units of good X based on the…

A: Budget constraint: - it is a graphical representation of different bundles of goods that a consumer…

Q: Which of the following is most likely an inferior good?

A: Inferior Goods -  It is a good for which quantity demanded tends to decrease as the individual’s…

Q: If a producer can use resources to produce either good A or good B, then A and B areA) substitutes…

A: In a firm the producers produce the goods using all the inputs efficiently. After producing the…

Q: If the cost of producing Good A falls, this will cause      A) an increase in the market price of…

A: In a market, the cost of producing any good influence the market equilibrium due to change in the…

Q: True or False: As the price of apples rises, the demand for apples falls, ceteris paribus.

A: According to the law of demand, there is a negative relationship between the price level of a…

Q: A tropical storm creates A shortage of the items needed in the production of Good B .explain how…

A: Production possibility frontier Production possibility frontier (PPF) is the curve which shows all…