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Humble High School*
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Feb 10, 2024
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Dlgite i . @ Introductory Macro.. @ Khan Academy CENGAGE | MINDTAP Problems & Applications (Ch 04) Back to Assignment AL Average 0.7/ 1 7. Problems and Applications Q7 Ketchup is a complement (as well as a ndim : ' P P! t ( S 1l condil ent) for hot dDgS. If the price of hot dOgS rises, the quantity of hot dogs del anded falls v, which owers the demand for ketchup. Be of il ilibri ¢ v d for p. cause of the change in the equuhbnum quantity of ketchup, the demand for tomatoes by ketchup producers falls Vv , causin ilibri i i 4 g the equilibrium price of tomatoes to decrease ¥ . This means producers of tomato juice face lower v input prices, and the supply of tomato juice decreases X . The resulting fall_ v in the price of tomato juice causes people to substitute away from tomato julce and toward orange juice X | so the demand for orange juice rises X . L3 = o L )i Ketchup is a complement for hot dogs. Therefore, when the price P demand for ketchup. The end result is that both the equilibrium price and quantit demand for tomatoes by ketchup producers falls, so the equilibrium price and quantity of t producers of tomato juice face lower input prices, so the supply curve for tomato juice shifts out, cai the quantity of tomato juice t demand for orange juice declines, cau Supply Curve; and Three Steps to Analyzing Changes in Equilibrium. o rise. The fall in the price of tomato juice causes people to substitute tomato sing the price and quantity of orange juice to fall. See Sections: Shifts in P e it Points: mEmw 0.67 / 1 Close Explanation ~ of hot dogs rises, the quantity of hot dogs demanded falls, and this lowers the y of ketchup fall. Because the quantity of ketchup falls, the omatoes fall. When the price of tomatoes falls, using the price of tomato juice to fall and juice for orange juice, so the the Demand Curve; Shifts in the - i i % % 3 i f
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