The demand for beer when average consumer rises

Assignment Help Business Economics

Reference no: EM131197542

The demand for beer in Japan is given by the following equation:

Qd= 500 - 2P - PN + 0.1I

Where P is the price of beer, PN is the price of nuts, and I is average consumer income.

a) What happens to the demand for beer when the price of nuts goes up? Are beer and nuts demand substitutes or demand complements?

b) What happens to the demand for beer when average consumer rises?

c) Graph the demand curve for beer when PN = 20 and I = 1,000.

Reference no: EM131197542

Questions Cloud

True regarding tort litigation : Which of the following is true regarding tort litigation?

Quality of care compared to traditional fee-for-service : MCOs You are a new physician setting up your own practice in a new town. You are researching the different MCOs offered in your area and are considering becoming a physician for one of these networks. Discuss the ethical issues or concerns about MCOs..

What are the strategic implications of changing its strategy : JC Penney has faced an identity crisis in recent years. Select the optimal generic strategy for JC Penney to pursue so the company achieves sustainable competitive advantage. Support your selection with researched sources. Include the generic strateg..

The demand for beer when average consumer rises : Where P is the price of beer, PN is the price of nuts, and I is average consumer income. What happens to the demand for beer when the price of nuts goes up? Are beer and nuts demand substitutes or demand complements? What happens to the demand for be..

Training for triathlon-timed race that combines swimming : Valerie is training for a triathlon, a timed race that combines swimming, biking, and running. While Valerie usually practices swimming for two hours per day, she decides to continue for an additional hour because the pool is less crowded than usual ..

Measures globalization on economic-political dimensions : The KOF Index of Globalization, provided by the KOF Swiss Economic Institute, measures globalization on economic, social, and political dimensions. Provide a brief analysis (not a description) of this index and its ranking using concepts from the tex..

Explain the terminologies in economics : Explain the following terminologies in economics. The efficiency of mass production? How does the theory of efficient production apply to managers of government bureaus or departments that are not run for profit? How about non-profit clubs that colle..

Under what circumstances is the tractor-trailer fixed input : Oversize Transport Inc. supplies custom delivery service for very large construction equipment in the southeast region of United States. The most common lead of the specialty trucker is the Caterpillar model 740 dump truck, which is about 258 feet lo..

User Account

All Pages