Popeyes income declines and, as a result, he buys

more spinach. Is spinach an inferior or a normal

good? What happens to Popeyes demand curve for
spinach? In this case, spinach is an inferior good. A rise in quantity demanded at any given price will
shift the demand curve to the right.

Beer and pizza are complements because they are often enjoyed together. When
the price of beer rises, what happens to the supply, demand, quantity supplied,
quantity demanded, and the price in the market for pizza?
When the price of beer rises,the demand for pizza declines, because beer and pizza
are complements and people want to buy less beer.

In sum, supply is unchanged, demand is decreased, quantity supplied declines,

quantity demanded declines, and the price falls.

When we say the demand for pizza declines, we

mean that the demand curve for pizza shifts to the left.

The supply curve for pizza is not affected.

With a shift to the left in the demand curve, the equilibrium price and quantity both
decline. Thus the quantity of pizza supplied and demanded both fall.

As the price of beer increases, demand for pizza decreases since people buy them together.
Supply for pizza would remain unchanged, demand decreases, quantity supplied decreases,
quantity demanded decreases, and then the price falls. The entire demand curve for pizza
has shifted to the left and therefore affected the equilibrium price and quantity of pizza, in the
send reducing the quantity of pizza supplied and demanded.

Define the equilibrium of a market. Describe the forces that move a market toward its
equilibrium
Equilibrium of a market is where supply and demand have been brought into
balance. At this price, the quantity of a good that buyers are willing and able to buy
balances with the quantity sellers are willing and able to sell. The activity of many
buyers and sellers automatically pushes the market price toward the equilibrium
price. Increase in demand and shortage of supply can also move the equilibrium
price, but how quickly equilibrium is reached thereafter varies from market to market.