Chapter 3.odd - Chapter 3 Supply and Demand Q 1 3 5 7 9 11 13 15 Chapter 3 Problem 1 State whether the following pairs of goods are complement or

Chapter 3.odd - Chapter 3 Supply and Demand Q 1 3 5 7 9 11...

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Chapter 3 Supply and Demand Q. 1, 3, 5, 7, 9, 11, 13, 15
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Chapter 3, Problem 1 State whether the following pairs of goods are complement or substitutes. (If you think a pair is ambiguous in this respect, explain why.)
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Chapter 3, Problem 3 Indicate how you think each of the following would shift demand in the indicated market
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Solution to problem 3 (2) Buyers in the market for CDs learn of an increase in the price of audiocassettes. The demand will shift up (right) CDs and audiocassettes are substitutes . They both can be used to record and play music or soundtrack. If price of audiocassettes increases, people will probably switch to CDs Buyers in the market for CDs learn of an increase in the price of CDs As price of CDs goes up, people will buy less But the demand curve will not shift- why? Change in Quantity Demanded versus Change in Demand
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