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As the price of good x rises from 10 to 14 the quantity demanded of y rises from 100 units to 120 units are x and y substitutes or complements?
Wiki User
∙ 15y ago
X and Y are substitutes i.e. Y can be used in place of X. A hypothetical example is meat and fish; if the price of meat rises, less of it will be demanded according to the law of demand. The demand will shift to the low-priced fish, assuming the price of fish is less than that of meat. Raymond. X and Y are substitutes i.e. Y can be used in place of X. A hypothetical example is meat and fish; if the price of meat rises, less of it will be demanded according to the law of demand. The demand will shift to the low-priced fish, assuming the price of fish is less than that of meat. Raymond.
Wiki User
∙ 15y ago
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When the percent change in price is greater than the percent change in quantity demanded demand is said to?
Elastic
What does the p and q stand for on the axis of a demand graph?
Economics: P= Price and Q = Quantity Demanded.
What is the price elasticity for a good when there is a 10 percent decrease in price which results in a 2 percent increase in quantity demanded?
2/10=0.2 <1 the good is price inelastic
How do you find the equillibrium price and quantity using graphical and algebraic methods?
The demand and supply schedules for carrots in a certain market are given below: Price per ton Quantity demanded per month Quantity supplied per month Sh. '000 (Thousands of tons) (Thousands of tons) 2 110.0 5.0 4 90.0 46.0 8 67.5 100.0 10 62.5 115.0 12 60.0 122.5 Determine the equilibrium quantity and price by graphical method.(4marks)
A perfectly price- inelastic demand curve is A horizontal b downward sloping c upward sloping d vertical?
A perfectly price-inelastic demand curve is vertical (Parallel to Y-axix) because the percentage change in quantity demanded is nil whatever the percentage change happens in price.
Price of substitutes and complements vs price of commodities?
Relationship of good price to price of substitutes and complements: 1) Substitutes: as the price of substitutes for a good falls, the price of a good must fall in order to maintain demand. 2) Complements: as the price of complements falls, the price of a good can increase and still maintain the same level of demand.
At equilibrium price the quantity is demanded always equal to the quantity supplied?
Yes, the equilibrium price equates the quantity supplied to the quantity demanded.
If the price is less than the equilibrium price what is the relatiionship of quantity supplied to quantity demanded?
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
When is a price floor not binding?
the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor
How price of related goods affect demand?
Price of related goods fall into two categories: substitutes and complements. Complements are when a price decrease in one good increases the demand of another good. Substitutes are when a price decrease in one good decreases the demand for another good.
When quantity demanded is greater than quantity supplied the price will?
the price increase
What is the price called at which the quantity demanded is equal to the quantity supplied?
equilibrium price
The quantity of a product that will be purchased at a given price is the?
quantity demanded
Why price and quantity demanded are inversely related?
Price is inversely related to quantity demanded because as price rises, consumers substitute other goods whose price has not risen.
What is unique about an equilibrium price?
quantity demanded and quantity supplied are equal
How is price and quantity demanded related?
As a general rule, as the price level increases the quantity demanded will decrease, and vice versa. If the good or service is inelastic (e.g. a necessity or necessary to survival) a change in price will affect the quantity in a less than proportionate manner. That is, if there is a increase in price, the quantity demanded will increase only a small (if any) amount. If the good or service is elastic (e.g. luxury items) a change in price will affect quantity demanded more than proportionately. So if the the price increases, quantity demanded will decrease a large (more than proportionate) amount.
Determinants of quantity demanded?
Equilibrium is defined to the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves.
