118 Qs 12SEP

118 Qs 12SEP - Christopher Zwicker Section 118 12 September...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Christopher Zwicker Section 118 12 September 2006 Student questions and Answers 1. What are the effects of a change in production of complimentary products on the supply curve? Products that are compliments in production are products that must physically be produced together (You can’t have one without the other). Professor Gunter’s example was that in producing LEATHER goods you have a residual product, A DEAD ANIMAL. When you produce leather you also produce dead animals. Now those dead animals could be disposed of, or could be sold to another company to produce food products. If people were to demand more leather, the price of leather would rise, causing more people to supply leather, which itself would lead to a greater supply of leather. So with more leather production, their will be more dead animals by default. Here are some other examples of compliments of production if leather and animals doesn’t do it for you: - Production of Lumber can create woodchips for playgrounds - Raising domestic animals yields a great deal of biofuel (methane) or fertilizer
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

118 Qs 12SEP - Christopher Zwicker Section 118 12 September...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online