Question

11. At $20 there is a 12. At $50 there is a of 80 pairs of jeans. of 40 pairs of jeans. 13. When demand is high, price is 14. When demand is low, price is 15. When supply is high, price is 16. When supply is low, price is 17. When supply is greater than demand, there is a 18. When demand is greater than supply, there is a 19.hotdog / hamburger substitutes complements 20. baseball / baseball glove substitutes complements 21.popcorn / pretzels substitutes complements 22. coffee / cream substitutes complements 23.remote / batteries substitutes complements 24. Complements experience the circle one) supply and demand. same opposite changes in 25. Substitutes experience the circle one) same demand. opposite changes in supply and

Answer 1

13. When demand is high, price is high (or increasing)

( This is because consumers are willing to pay a higher price as the good is in higher demand)

14 When demand is low, price is low. (or decreasing)

(Demand is low means no takers. So price falls in order to attract customers)

15 When supply is high, price is low (or decreasing)

( There is more quantity of goods than needed. So price falls)

16 When supply is low, price is high (or increasing)

(Consumers want more quantity, but it is not available. So prices rise)

17 When supply is greater than demand, there is surplus

(There is too much available, but no demand to match it. In other words, there is surplus)

18 When demand is greater than supply, there is shortage.

(Consumers want goods, but they are not available. Not enough supply. In other words, there is shortage)

19 Hotdog / hamburger - substitutes

(When a person is hungry he will eat either hotdog or a hamburger. Therefore these two are called substitutes)

20 Baseball/ baseball glove - complements

(Baseball and baseball glove are used together. They go with each other. So they are called complements)

21 popcorn / pretzel - substitutes

(A person may opt for popcorn or a pretzel when he he hungry. So they are called substitutes)

22 coffee / cream - complements

(Coffee and cream are used together. They are mixed together. o they are called complements)

23 remote / batteries - complements

(Remote and batteries are used together.)

24 Complements experience the opposite changes in supply and demand

(When the price of one of the complementary goods increases, its demand decreases so does the demand for its complement because both are more expensive now. But supply of both the goods increases as it is more profitable to sell them. So demand and supply move in opposite directions)

25 Substitutes experience the opposite changes in supply and demand

(When price of one of the substitute goods increases, its demand falls as it is costlier now, and supply increases as will fetch more profits with increased price, but demand for its substitute rises as it is cheaper in comparison, and supply falls as it is more profitable to sell the other good. In case also demand and supply change in opposite directions)