Question

Spinach and Corn Roti are often eaten together, they are complements.
a. We observe that both the equilibrium price of spinach and the equilibrium quantity of Corn Roti have risen. What could be responsible for this pattern—a fall in the price of corn flour or a fall in the price of spinach leaves? Illustrate and explain your answer.
b. Suppose instead that the equilibrium price of spinach has risen but the equilibrium quantity of corn roti has fallen. What could be responsible for this pattern— a rise in the price of corn flour or a rise in the price of spinach leaves? Illustrate and explain your answer.

Answer 1

Answer:

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