Answer to Question #233956 in Economics of Enterprise for Lee3415

Question

Question 3
As a group/individual choose a familiar product. Explore the demand for your product.
3 What is your product? (2)
________________________________________

Draw graphs of your product for each scenario accompanied by an explanation:
a) A substitute for your product
Insert graph here


b) A complement for your product
Insert graph here


c) An inferior good in comparison to your product
Insert graph here


d) A change in price for your product (8)
Insert graph here

Answer 1

My product is tea

a) Substitute for tea is coffee.

When the demand for tea increases, the demand for coffee reduces.

b)My complement for tea is milk

c) c) Chocolate is my inferior good

d) When the price increases the demand will decrease since it will have gone above the budget of other customers.