Consider the market for Ping golf clubs Suppose the price of memberships at loca

Question

Consider the market for Ping golf clubs Suppose the price of memberships at local golf courses increases Use the ine drawing tool to show how this affects the demand for Ping golf clubs by drawing a new demand curve Assume memberships at locall golf courses and Ping golf clubs are complements Properly label this line Carefully follow the instructions above, and only draw the required objects Instead, suppose the price of tennis rackets increases If tennis rackets and goif clubs are substues hen the demand for Ping golf cubs will decrease ncrease

Explanation / Answer

Simce ping golf clubs and memberships at pocal golf course are complements goods whoch means when price of membership at local golf courses increases it will decrease the demand of ping golf club. Thus the demand of ping golf club decreases leading a leftward shift im demand curve. Thus shift the demand curve paralelly leftward.

When price of tennis racquet increases then it will increase the demand of ping golf club leading to rightward shift of ping golf club demand curve, it is because price golf club and tennis racquet are substitue goods.

Thus ans is increase.

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