Consumer incomes increased

Assignment Help Business Economics

Reference no: EM13976424

If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if

a. the price of shoes decreased.

b. consumer incomes increased.

Use the graph to visualize the changes.

Reference no: EM13976424

Questions Cloud

The price of a pound sterling in terms of the dollar : Suppose that one canister of Pringles costs £25, that of Macadamia Nuts costs $5 per can, and that the relative price of Macadamia Nuts in terms of Pringles is 3 cans per canister. Figure out the following: The dollar-pound exchange rate, i.e. the pr..

Gasoline dummy variable as independent variables : Run a multiple regression that has the maintenance cost as the dependent variable and the age, miles per month, and Gasoline dummy variable as independent variables.

Competitive markets is the cost to society of variety : Economists say that excess capacity in monopolistically competitive markets is "the cost to society of variety." What is the cost that economists are talking about and why is this cost the result of having a variety of goods and services?

Overfishing and global warming : We discussed similarities between solutions, or potential solutions, to overfishing and global warming. In a short paragraph, describe that solution (or solutions) and explain, briefly, how it, or they, would work.

Consumer incomes increased : If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if the price of shoes decreased. consumer incomes increased. Use the graph to visualize the changes.

What price should firm charge to realize targeted profit : An auto-service establishment has estimated its monthly cost function as follows: What price should the firm charge to realize the targeted profit? What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is: Q = 3000 ..

Higher the fixed cost the lower break-even output quantity : Assuming a constant marginal cost, a lower price elasticity of demand would call for a relatively lower mark-up ration. Mark-up pricing might be more suitable for monopolies. The higher the fixed cost the lower the break-even output quantity.

What would be its markup ratio : An auto-service establishment has estimated its monthly cost function as follows: Where Q is the number of cars it services each months and TC represents its total cost. The firm is targeting 35,000 net monthly profit servicing 2000 cars. What price ..

Different inflation rate : In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?

User Account

All Pages