Fill in the matrix below and describe how changes in price or quantity of the goods and services affect either supply or demand and the equilibrium price. Use the graphs from your book and the Tomlinson video tutorials as a tool to help you answer questions about the changes in price and quantity
1. What do substitutes refer to in economics? Give an example of two substitutes.
2 Define “Price Elasticity of Demand.” Give an example.
3 Determine if the demand for the following products is price elastic or price inelastic, and explain your answer. In your explanation, be sure to include how the necessity of a good and the availability of substitutes affect the price elasticity of demand in each of these specific cases:
* Gasoline as a commodity
* Gasoline sold at a local gasoline station
* Hotel rooms for people planning a vacation
* Hotel rooms for people on business to meet an important client
4. Define the Law of Demand and the Law of Supply. Give an example for each.
680 words answer.
Answer will be sent by email. It may take few hours to send the asnwer. You may email us if you have any query...
