Question

Consider the market for avocados. If the number of avocados sold is decreasing, but prices increasing, then we can conclude

supply of avocados is decreasing

supply of avocados is increasing

demand for avocados is increasing

demand for avocados is decreasing

Suppose you work at a home improvement store. You have noticed that when the price of some tool X increases by 20%, the quantity consumed of another tool Y to decreases by 10%. If everything else is held constant, you can say with certainty that good X and good Y are:

inferior goods

normal goods

substitutes

complements

unrelated

Older adults generally require more care and health care than younger adults. As the life expectancy in the United States increases, which of the following would likely happen to the demand curve for items such as health care, cancer treatments, and nursing facilities?

There would be a decrease because individuals are healthier.

There would be an increase because the cost of these items is falling.

There would be an increase because there will be more buyers in these markets.

There would be a decrease because Social Security benefits are running out.

They will stay the same because these changes would affect the supply curve and not the demand curve.

Answer 1

1) demand for avacados is increasing.

Since the quantity sold of avocado is decreasing and price increasing due shortage created in the market excess demand will occur and this price will increase.

2)Complements

They are compliment because price rise of X leads to less demand of Y, which only happens in case of compliments.

3) There would be an increase because there will be more buyers in these markets.

Since the life expectancy has risen there will be an increase in the demand for these things such as health care and all. Due to increase in life expectancy, people are expected to live for more years.