Question

1) Of the following sets of goods, which set is an example of two goods that are complements?

Select the correct answer below:

-beer & wine

-smartphones & tablets

-soda & sports drinks

-peanut butter & jelly

2)

Which two of the following factors will not affect the supply of chairs?

Select all that apply:

• the cost of wood

• current wage rates for furniture builders

• the price of couches

• the price of tables

3)

Which of the following illustrate examples of scarcity?

Select the two correct answers below.

Select all that apply:

• Crude oil was in short supply in the 1970s, leading to a quantity demanded of gasoline being greater than the quantity supplied.

• The expansion of Amazon's headquarters in Seattle has created new jobs for local residents and encouraged more people to move there for work.

• Due to an increase in demand for craft beer in Portland, the number of microbreweries has increased.

• Millions of chickens in Mexico were wiped out by a severe case of avian flu in 2012 resulting in a shortage of eggs.

Answer 1

1. -peanut butter & jelly
(This pair shows complimentary goods. All others are substitutes.)

2. the price of couches
the price of tables
(Both of these factors would affect the demand for chairs and not the supply.)

3. Crude oil was in short supply in the 1970s, leading to a quantity demanded of gasoline being greater than the quantity supplied.
Millions of chickens in Mexico were wiped out by a severe case of avian flu in 2012 resulting in a shortage of eggs.
(Both these examples shows shortage and thus scarcity.)