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Demand and supply

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There is a major technological advance in the process for producing bicycles.
a. What happens to bicycle supply?
b. What happens to bicycle demand?

Peanut butter and jelly are complements in consumption. The price of peanut butter rises.
a. What happens to the demand for jelly?
b. What happens to the demand for peanut butter?

The number of wheat producers declines.
a. What happens to the supply of wheat?
b. What happens to the demand for wheat?

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Solution Summary

Response discusses the Demand and supply factors

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As per csun.edu, "Demand is the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy." Factors causing changes in demand are:

?Income and wealth
? prices of substitutes and complements
? population
? preferences

Hence things that would cause a rightward shift are:
- Increase in Income
- Favorable change in taste for the product
- Increase in population
- Increase in price of substitutes
Now let us discuss about the supply curve
As ...

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