econ1 - Cassandra Shenefelt Economics Homework 1 1 e I...

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Cassandra Shenefelt Economics Homework 1 1. e. I chose the middle point D for complete and total efficiency because it is the middle point on the curve. The point shows the equilibrium point for producing twinkies and computers. 2. a. This situation is going to cause a change in quantity demanded for hamburger because the price increased which by definition is change in quantity demanded. c. The price increase of hamburger will affect hamburger buns by causing a decrease in quantity demand. e. The price increase of hamburgers will cause an increase of quantity demanded for hotdogs, because hot dogs are a substitute for hamburgers. g. The price increase of hamburger will affect hotdog buns by an increase in quantity demanded. i. An increase in price of hamburger will have no affect on floor wax because they are not connected. 3 a. My graph looks the way it does because as the price of milk goes up the quantity produced of non dairy creamer decreases. b. As the cost of coffee increases the quantity demanded of cream decreases. This is
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