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Prices of Related Goods
Transcript of Prices of Related Goods
Decrease in price of strawberries increase price of hamburgers Increase in the demand of whip cream = Example 1 Example 2 decrease in demand for hamburger buns = Historical Example Crude oil: rose from $2.50 per barrel in 1948 to $3.00 per barrel in 1957 real terms: Price decline from $19 per barrel to $14 per barrel Do to World War 2 Contemporary Example When crude oil prices go up, the demand for bigger cars go down, thus making the demand for small cars increase