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Supply and demand

There is no such a thing as a product B - so substitute your own "real product" for Product B - for example, Product B could be "bananas" and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc.

1. What effect will each of the following have on the demand for product B?
a. Product B becomes more fashionable.
b. The price of substitute product C falls.
c. Income declines and product B is an inferior good.
d. Consumers anticipate the price of B will be lower in the near future.
e. The price of complementary product D falls.
f. Foreign tariff barriers on B are eliminated.

Solution Preview

there is no such a thing as a product B - so substitute your own "real product" for Product B - for example, Product B could be "bananas" and consider what would happen if bananas became more fashionable, the price of a substitute for eating bananas decreases (for example, oranges), etc.

1. What effect will each ...

Solution Summary

Response discusses the concept of supply and demand with various examples

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