Question

1. Explain the effect on demand caused by the following:

a. the expectation of future price increases,

b. a change in the price of the good,

c. an increase in the price of a substitute good, and

d. an increase in the price of a complementary good.

2. If the demand for a product is inelastic, what are the implications?

3. List and explain three factors that cause the supply curve to shift?