DEMAND IN-CLASS WORKSHEET 3 This question examines the market for apples. You will identify a demand curve in the presence of a related good, like a substitute or complement, and demonstrate how the price of the related good shifts the demand curve you identified. The demand for apples is given as: Q- Quantity demanded for apples PA Per pound prize of an apple P8= Per pound prize banana where Q is the quantity demanded of apples, PA is the per-pound price of an apple, and PB is the per-pound price of a banana. Qd = 10-PA+ 0.5 PB, (6.00) Task 1: Suppose that the price of a pound of bananas is PB = $6.00. What is the demand curve function for apples when PB = $6.00? ad=10-PA+ 0.5 (6.00) @d=10-PA+3 1-3 ad = 7-PA Task 2: In the space below, in black ink, sketch out the demand curve for pounds of apples when the price of a pound of bananas is $6.00. Remember to place "Quantity of Apples Demanded (pounds)" on the horizontal axis and "Price (dollars)" on the vertical axis. Hint: This demand curve is a straight line. Price Lauantity

DEMAND IN-CLASS WORKSHEET 3 This question examines the market for apples. You will identify a demand curve in the presence of a related good, like a substitute or complement, and demonstrate how the price of the related good shifts the demand curve you identified. The demand for apples is given as: Q- Quantity demanded for apples PA Per pound prize of an apple P8= Per pound prize banana where Q is the quantity demanded of apples, PA is the per-pound price of an apple, and PB is the per-pound price of a banana. Qd = 10-PA+ 0.5 PB, (6.00) Task 1: Suppose that the price of a pound of bananas is PB = $6.00. What is the demand curve function for apples when PB = $6.00? ad=10-PA+ 0.5 (6.00) @d=10-PA+3 1-3 ad = 7-PA Task 2: In the space below, in black ink, sketch out the demand curve for pounds of apples when the price of a pound of bananas is $6.00. Remember to place "Quantity of Apples Demanded (pounds)" on the horizontal axis and "Price (dollars)" on the vertical axis. Hint: This demand curve is a straight line. Price Lauantity

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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