We'll tackle this problem one by one. let's start with substitutes.
Substitute goods are goods that are able to be interchangeable i.e. if you don't have A, you can still use B
Teas and coffees
Imagine, that at the starting place, both of these goods are sold at price P.
However, due to a good harvest year, coffee price was able to decrease (since coffee bean prices decreased), to P1 lower than P.
This, in effect means that people will switch from Teas to coffee (due to cheaper price), and thus, increasing the quantity supplied and demanded of coffee while decreasing the quantity supplied and demanded of tea
Onto complements.
Compliments goods are goods that are normally used together for example, Computers and Windows.
Imagine then, what would happen if the demand of Windows increase? To run windows, people need a computer. Therefore, if the demand of Windows increase, the demand of Computers would in return, also increase. And if people demand less Windows, they would also demand less computers (although you can argue they switch to Mac or Linux!) Much the same with supply, if they supply less computers, the supply level of Windows must also go down to not have excess software in the market. If they produce less windows, less computers need to be produced for the same reason!
Determinats of demand * Income * Taste or Preference * Prices of substitutes or complements * Expectations of the future * Population Determinants of Supply * Technology * Factor prices * The number of Suppliers * Expectations of the future * Environmental conditions
Changes in the supply of substitutes can have a significant impact on the demand for a particular good in economics. When the supply of substitutes increases, consumers have more options to choose from, which can lead to a decrease in demand for the original good. Conversely, if the supply of substitutes decreases, consumers may be more likely to purchase the original good, leading to an increase in demand. This relationship between supply of substitutes and demand for a particular good is an important factor in understanding consumer behavior and market dynamics.
Determinants of demand include consumer preferences, income levels, prices of related goods (substitutes and complements), future expectations, and the number of buyers. An increase in consumer income generally raises demand for normal goods, while a decrease raises demand for inferior goods. On the supply side, determinants include production costs, technology, number of sellers, government policies (taxes and subsidies), and future expectations. Changes in these factors can shift the supply curve, impacting the overall market equilibrium.
use a demand and supply diagram to illustrate the effect of a subsidy.
In the law of supply and demand the effect on the Labor Market is that labor is a commodity.Labor is a commodity
Determinats of demand * Income * Taste or Preference * Prices of substitutes or complements * Expectations of the future * Population Determinants of Supply * Technology * Factor prices * The number of Suppliers * Expectations of the future * Environmental conditions
Changes in the supply of substitutes can have a significant impact on the demand for a particular good in economics. When the supply of substitutes increases, consumers have more options to choose from, which can lead to a decrease in demand for the original good. Conversely, if the supply of substitutes decreases, consumers may be more likely to purchase the original good, leading to an increase in demand. This relationship between supply of substitutes and demand for a particular good is an important factor in understanding consumer behavior and market dynamics.
In economics, complements are goods that are consumed together, meaning that an increase in the price of one leads to a decrease in the demand for the other (e.g., coffee and sugar). Substitutes, on the other hand, are goods that can replace each other; an increase in the price of one leads to an increase in demand for the other (e.g., butter and margarine). These relationships help explain consumer behavior and the dynamics of supply and demand in markets.
Determinants of demand include consumer preferences, income levels, prices of related goods (substitutes and complements), future expectations, and the number of buyers. An increase in consumer income generally raises demand for normal goods, while a decrease raises demand for inferior goods. On the supply side, determinants include production costs, technology, number of sellers, government policies (taxes and subsidies), and future expectations. Changes in these factors can shift the supply curve, impacting the overall market equilibrium.
use a demand and supply diagram to illustrate the effect of a subsidy.
In the law of supply and demand the effect on the Labor Market is that labor is a commodity.Labor is a commodity
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supply and demand
there will be no change in price because as demand will increase supply will also increase.
There wouldn't be a great demand for the commodity as, lower ther the prices, more the demand of the commodity.Remember, Demand for a product increases when the prices of its complements decreaseANSWER: Supply and demand
Hoe did supply and demand affect the price of cattle
A price floor is binding in a market when it is set above the equilibrium price, leading to a surplus of goods. Factors that determine whether a price floor is binding include the level at which the price floor is set, the elasticity of supply and demand for the product, and the presence of substitutes or complements in the market.