What can you deduce about the type of good Patty’s Pizza is and about the relationship between Patty’s Pizza and Sue’s Subs?
Suppose that when the average college students income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80. Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie, the quantity demanded of Sue's Subs increases from 80 to 100. Suppose also that when the average student's income increases to $12,000 per year, the annual quantity demanded of Patty's Pizza increases from 50 to 60
a) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes
b) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are complements
c) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are substitutes
d) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are complements
Answer: a) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes
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In a typical year, ________ new firms open in the United States
A) more than 400,000 B) more than 1 million C) approximately 125,000 D) less than 200,000
The supply curve represents the relationship between:
A. income and quantity supplied with everything else held constant. B. price and quantity supplied with everything else held constant. C. consumer preferences and quantity supplied with everything else held constant. D. income and price supplied with everything else held constant.