This paper circulates around the core theme of (a) Bagels and cream cheese are often eaten together, so they are complements. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
1.
(a)
Bagels
and
cream
cheese
are
often
eaten
together,
so
they
are
complements.
Suppose
that
the
equilibrium
price
of
cream
cheese
has
risen
but
the
equilibrium
quantity
of
bagels
has
fallen.
What
could
be
responsible
for
this
pattern
–
a
rise
in
the
price
of
flour
or
a
rise
in
the
price
of
milk?
Illustrate
and
explain
your
answer
with
demand
and
supply
diagram
for
bagel
(b)
Suppose
the
government
imposes
a
price
floor
on
the
bagel
market
to
maintain
bagel
producers`
income.
Briefly
explain
to
government
why
the
policy
would
yield
an
inefficient
outcome.
Use
the
supply
and
demand
model
to
illustrate
your
answer.
2.
Boom-‐Energy
is
a
manufacturer
of
energy-‐boosting
products.
The
Board
of
Boom-‐Energy
has
hired
you
to
investigate
whether
its
Horse-‐Energy
Bars
and
Choco
Bars
are
complementary
goods,
substitute
goods
or
there
is
no
interdependence
between
the
two
goods.
Using
appropriate
economic
tools
and
terminology,
explain
how
you
would
carry
out
your
investigation.
