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MACROECONOMICS

a.
Suppose that someone told you that an increase in the price of DVD players  caused a decrease in the demand for DVDs. Is this what you would predict? Why or why not?
b.
Suppose that someone told you that an increase in the price of gasoline caused a decrease in the demand for public transportation. Is this what you would predict? Why or why not?
c.
Suppose an economic forecasting group has determined that an increase in the price of orange juice has no effect on the demand for soft drinks? What can you conclude from this information?
 
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Answer by: HonorsChick

First Answer
a. yes, because dvd players are not a necessity and can be done without untill the price lowers again

b. no because people would be more likely to take public transportation due to the fact that it is cheaper to pay a fare than it is to buy the gas themselves

c. the supply and demand of soft drinks have no correlation to the prices of orange juice

This is just my logic, but I hope it helps
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