3 points For each of the following statements indicate wheth

(3 points) For each of the following statements, indicate whether or not the word \"demand\" is used correctly by writing \"OK\" next to it. If the term \"quantity demanded\" should be used instead, write \"QD\" next to the statement to indicate \"demand\" is used incorrectly. a. The price of chocolate is increasing as worldwide demand for chocolate has been b. Relatively low gasoline prices led to an increase in the demand for trucks in 2017. c. Rising soybean prices have resulted in falling demand for soybeans. 4 points) a. Smartphone ownership rose nearly 50 percent in China between 2013 and 2017 and is expected to continue to grow at a significant rate. What impact does this have on the demand for apps in Chinese? b. What is the economic term for the relationship between smart phones and apps? c. What is the relationship between large screen smart phones and tablets like the iPad mini? d. Are smart phones normal goods or inferior goods? Explain.

Solution

1)

a) Quantity demand for chocolate will lead to increase in the price of chocolate. (use quantity demand)

b) Low prices will result in high demand for trucks. (use demand)

c) Rising prices will lead to decrease in quantity demand for the soybean. (Use quantity demand)

2)

a) As the demand for the smartphones are high the demand for APPs used in those smartphones will also increase.

b) The demand for Apps and Smartphones are complementary. If one rises the other will also rise.

c) Large screen smartphones and iPads are substitute goods. People will use large-screen smartphones or iPads.

d) Smartphones demand increase with an increase in the income. So they are normal goods.