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Prices of related goods

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by

emily aicher

on 22 April 2010

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Transcript of Prices of related goods

Prices of related goods! The supply for one good is often connected to the supply for its related good. This is Farmer Joe! Joe grows Wheat Corn soybeans Hay Joe's Plan! Plant a field of wheat. BUT THEN!! The price of wheat dropped, OHNO!! The price of corn is now higher than the price of wheat so he decides to plant corn there is now an increase of a related good corn due to the decrease in the price of wheat Other examples Alot of people like buying A.sunglasses but when the price of the materials to make theses sunglasses goes up so does the price of the sunglasses, because of this increase in price there is a decrease in demand. Now the demand for B. sunglasses goes up.
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