Answer to Question #116415 in Microeconomics for Mateus Michael Ndinomwene

Question

5.) Sketch and explain the demand relationship in each of the following statements.
a) I would never buy donkey meat! You couldn’t even give me one for nothing or
for free.
b) I like canned fish and if the price falls to N$2 per can, I’ll buy out the entire
stock of the Neudamm Campus tuck-shop.
c) Regardless of the price, the quantity demanded of fat-cake by students at
Sam Nujoma Campus doesn’t change.

Answer 1

a.

The graph shows that even if the price of donkey meat increases or decreases the quantity demanded will not change.Therefore, the demand will still remain Zero.

b.

A small change in price leads to a bigger percentage change in quantity demanded.Thus, I will buy more canned fish when its price decreases.

c.

the graph shows a vertical demand.The quantity demanded for fat-cakes by the students will remain constant regardless the change of their prices.