more economics questins

First a complement good is a good that goes with another good, like hotdogs and hotdog buns.
They are complementary goods.  When hotdog sales go up due to a price decrease, the demand for buns increases.


A normal good is a good where the demand for that good goes up when income goes up.


A substitute good, which we use in the next question, is a good that can substitute for another good, like butter and margarine.

An inferior good is a good that when income goes up the demand for that product decreases, like potatoes or pasta that are used as fillers.

When the demand for hotdog buns goes down, the demand curve shifts in.
That means it intersects the supply curve at a lower equilibrium point on the supply curve, so both the price and and quantity of buns decreases.

 First, when technology increases for a substitute good the price of the substitute goes down because the supply increases, i.e., the supply curve for the substitute shifts to the right.
Since the price of a ubstitute goes down, the demand for the original good goes down, shifting the demand curve to the left.
This means that the new equilibrium for the original good is lower on the supply curve, which means that both the price and quantity decrease.


A tariff is the same thing as a tax.
In this case it is a tax on imported goods.
Assuming the starting point is supply curve S and demand curve D, imposing a tariff means the supply curve shifts in, which would be to S2.
the price increases and the quantity decreases since the new equilibrium point is higher on the demand curve.


If a tariff was set where the supply curve shifted to intersect the demand curve at the hashed line, then the price and quantity would both be the same in either case.