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Answer to Question #5190 in Microeconomics for vinothini
Question #5190
we choose petroleum as our good,gasoline as a substitude and car as a complement. explain how price of the related products and income affects the demand? give two graph for substitude, two graph for complement and one graph for income with detail explanation.
Expert's answer
If the price for gasoline increases, the demand for petroleum rises and if the
price for gasoline decreases, the demand for petroleum falls.
If the price
for cars increases, the demand for petroleum falls and if the price for cars
decreases, the demand for petroleum rises.
If the income increases, the
demand for petroleum rises and if the income decreases, the demand for petroleum
falls.
price for gasoline decreases, the demand for petroleum falls.
If the price
for cars increases, the demand for petroleum falls and if the price for cars
decreases, the demand for petroleum rises.
If the income increases, the
demand for petroleum rises and if the income decreases, the demand for petroleum
falls.
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