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Homework answers / question archive / If the price per dürüm is $8, there is Price per Dürüm Table 1 Quantity Demanded (Dürüms per Month) 1,500 1,200 KO 55 6 7 Quantity Supplied (Dürüms per Month) 500 700 900 1
If the price per dürüm is $8, there is Price per Dürüm Table 1 Quantity Demanded (Dürüms per Month) 1,500 1,200 KO 55 6 7 Quantity Supplied (Dürüms per Month) 500 700 900 1.100 1.300 9 300 an excess supply of 500 dürüms an excess demand of 69 an excess supply of 69. an excess demand of 500 dürüms If two goods are substitutes then a fall in the price of one good leads to a rise in the price of the other good does not affect the demand for the other good O leads to a lettward shift in the demand for the other good leads to rightward shift is the demand for the other good
Answer 1. An excess supply of 500 durums
Reason-
When price=$8,
Quantity demanded= 600
Quantity Supplied=1100
Excess Supply=1100-600= 500 durums
Answer 2. Leads to leftward shift in the Demand for other good.
Reason- When price of a substitute good falls, there will be a rise in demand for that good. So demand for other good falls. So demand curve shifts leftward.
