🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
4
answers
0
watching
206
views

What are substitutes  and complements in economics?

For each of the following pair of goods, determine whether the goods are substitutes, complements or  unrelated:

a. Peanut butter and Jelly

b. Private and Public Transportation

c.Coke and Pepsi

d.Alarm clocks and automobiles

e.Golf clubs and golf balls

Watch
4
answers
0
watching
206
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
22 Oct 2020
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

17. Peanut butter and jelly are complements. If there is a decrease in the price of jelly, producer surplus in the peanut butter market: A) will increase. B) will decrease. C) will not change. D) may change, but it is impossible to tell if it will increase or decrease.

Peanut butter and jelly are frequently used together in sandwiches, and are thus considered complements. if we observe that both the equilibrium price of peanut and the equilibrium quantity of jelly have risen, what could be responsible for this pattern - a fall in the price of peanuts, or a fall in the price of strawberries?

Suppose you know the following things about the market for peanut butter and the relationship between peanut butter and jelly:

Peanuts are an input used to produce peanut butter

Peanut butter is an income-inferior good.

Peanut butter and jelly are complements in consumption.

Grapes are an input used to produce jelly.

Use this information to answer what happens in the market for peanut butter in each of the following scenarios:

Scenario 1: Suppose because of a national drought the price of peanuts increases. In the market for peanut butter, the effect of this shock will be that the _____________ (Demand/Supply increase/decrease) and as a result the ______________ (Price Increase/Decrease) and the _____________. (Quantity Increases/Decreases)

Scenario 2: Suppose the economy enters a recession and household income decreases significantly. In the market for peanut butter the effect of this shock wil be that the _____________ (Demand/Supply increase/decrease) and as a result the ______________ (Price Increase/Decrease) and the _____________. (Quantity Increases/Decreases)

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in