1. 2.

Demand for pizzas increase during the Super Bowl because it is a very convenient food that anyone will eat, especially at parties. Normal goods are common in the sense that the consumption increases when income increases. Inferior goods are those that increase in consumption when income decreases.

1. Beans Inferior -cheap food 2. Tuxedos-normal -luxury good 3. New car - normal -large amount of money that you spend when you have excess. 4. Used clothing inferior -new clothes would be a normal good 5. Books reviewed in The New York Times normal -luxury good 6. Mac and Cheese Inferior -One of those goods that increase when people have less money because it is cheap. 7. Calculators normal -people like to add up how much money they are getting, not how much they are losing. 8. Cigarettes Normal -This ones tricky because I predict that sales stay pretty stable because nicotine is very addictive. 9. Legal Services normal -although they probably increase in tough times due to money disputes and foreclosures. 3. 1. 2. 3. 4. 5. Peanut butter and jelly -Complement because people eat peanut butter and jelly together Nike brand and Reebok brand sneakers -Substitute because they compete in the same market. Dress shirts and ties -Complement because the sale of a dress shirt often leads to the purchase of a tie. Airline ticket and hotels -Complement because when you travel you need a place to stay. Gas and Tires -Complement because when you buy gas you wear down your tires, eventually to the point where they need to be replaced.

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Beer and wine -Substitute because most people prefer one or the other. Cereal and milk Complement because you eat cereal with milk Cereal and eggs Substitutes because if you dont have cereal for breakfast you have eggs.

4.

1. An increase in the price of gas would decrease the demand for gas therefore reducing the amount of fatalities because less people would be driving and because the brainless people that cause accidents wouldnt be able to afford to drive. 2. A large reduction in rental rates would increase demand therefore increasing the chances that a fatality may occur. 3. An increase in airfare would cause a shift in demand to alternatives such as driving which would increase the chances of a fatality. a. b. c. d. e. Supply shifts to the left Demand shifts to the right demand shifts to the right Supply shifts to the right Demand shifts to the left

5.

6.

The tourist feels that the prices are increased so that the Gas companies can make a larger profit, which may or may not be true. The economist can see that since there are more tourist, demand increases therefore causing the equilibrium of price and quantity to increase.

12. 13. 14. 15. 16. 17.

12000 dozens 4000 dozens 10000 dozens 6000 dozens $2.50 is the equilibrium price with 8000 dozens per month