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a) Draw a demand curve shift to the right of the complementary good. The demand for playing tennis has increased, thus people must buy a

a) Draw a demand curve shift to the right of the complementary good.

The demand for playing tennis has increased, thus people must buy a racket and a complementary good (the tennis ball). The demand for the rackets has increased at the same price because of the factors of consumer trend and the nicer weather. Thus people must buy a racket and a complementary good (the tennis ball). The price of the tennis balls may be lowered which will incentivize consumers to buy the racket resulting in a shift in the demand curve to the right, generally when items are on sale people are more likely to buy the item or more qualities of the item.

b) Draw a demand curve shift to the left of the complementary good.

In the winter when it was cold and snowy the outdoor tennis courts were not used. The demand for playing tennis has decreased due to the weather and the general public not being incentivised to play tennis in these conditions. A sports store that sells the racket and the complementary good (the tennis ball) may have increased the price of the tennis ball because they know that most people who play tennis outdoors won't use them- only people who are serious about tennis (likely indoor players) will absolutely need a ball in order to play. The user's demand for the complementary good (tennis balls) declines because of such factors and theydon't see the need to buy the product alone- higher price of the complementary goods signals to buyers that there is more opportunity cost in the purchase so they will buy less (demand curve will shift to the left).

c) Draw a supply curve to the right.

A factor that influences the cost of transportation are the gas prices- this ties into the aspect of complementary goods; in order for transportation to occur there needs to be gas, when gas prices are high so is the cost of transportation and vise versa. For example, as of yesterday the gas price was 143.6 cents/liter, if that were to drop to 130 cents/liter the supply curve would shift to the right because the transport costs are lower than usual due to the gas prices being at a low; the demand for transport would be high as the users would get more services for the same cost.

d) Draw a supply curve to the left.

Inversely, if the gas prices were to rise from 143.6 cents/liter to 155 cents/liter, the supply curve would shift to the left. The high transportation costs would deter consumers from buying a large supply of goods (decrease the quantity of suppliers will offer at any price) because it would be alot more expensive to bring in supplies to different entities due to the increase in a complementary good.

*the drawings don't need to include numbers*

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