Indicate whether the events in the left-hand column of following table will affe
ID: 2505759 • Letter: I
Question
Indicate whether the events in the left-hand column of following table will affect the quantity demanded/ the demand for the item specified in the middle column. Explain your reasoning in each case.
Indicate whether the events in the left-hand column of following table will affect the quantity demanded/ the demand for the item specified in the middle column. Explain your reasoning in each case. Event Item Concept affected Expectations of a higher price for Novels Novels An increase in the price of apple Juice Orange Juice An increase in income Airline tickets An increase in the price of personal computers Printers Expectations of a higher price for coloring books Crayons A fall in the price of personal computers Personal computersExplanation / Answer
expectations of a higher price for novel ---demand for novel will increase ---- due to future expectation which is a determinants of demand
an increase in price of apple juice --- demand for orange juice will increase--- orange juice is a substitute good for apple juice
an increase in price of personal computer ----- demand for printer will decrease ----- printer is a complimentary good for computer
expectations of a higher price for coloring books ---- demand for crayons will increase --- future high price expectation will increase the curent demand of good which is a determinants of demand
a fall in the price of personal computers ---- demand for personal computer will increase ---- price and quantity demand have inverse relation