Answer to Question #15448 in Microeconomics for anne gulati

Question #15448
when the price of cars rises, what will be the effect on the equilibrium price and quantity of a)tires
b)bus tickets
1
Expert's answer
2012-09-28T10:14:25-0400
a) when the price of cars rises, there is a reduction of car's demand, demand for the accompanying goods (tires) decreases too, so price and
quantity of tires decreases.
b) when the price of cars rises, the is a reduction of car's demand, more people buy bus tickets because they
can't buy the car. So price and quantity of bus tickets grow up.

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Comments

Assignment Expert
28.09.12, 17:49

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anne
28.09.12, 17:43

Thank you so much

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