Question
“ the price of cookies decreases, the demand for milk increases” - Cookie Monster
Using the meme above and your understanding of the economic principles of supply and demand why is Cookie Monster right?
What would happen if the price of milk rises?
What would happen if there was a supply delay for both cookies and milk? please explain at least two effects
Answer each question in one sentence
Using the meme above and your understanding of the economic principles of supply and demand why is Cookie Monster right?
What would happen if the price of milk rises?
What would happen if there was a supply delay for both cookies and milk? please explain at least two effects
Answer each question in one sentence
Answers
GPT-4o mini
Cookie Monster is right because cookies and milk are complementary goods; when the price of cookies decreases, more people buy cookies, leading to an increase in demand for milk to consume with them.
If the price of milk rises, the quantity demanded for milk would decrease, likely leading to a decrease in the overall demand for cookies as fewer people buy milk to pair with them.
If there was a supply delay for both cookies and milk, consumers might seek substitutes for both products, resulting in a potential increase in demand for alternative snacks and beverages, and there could also be upward pressure on the prices of cookies and milk due to scarcity, worsening the supply shortage.
If the price of milk rises, the quantity demanded for milk would decrease, likely leading to a decrease in the overall demand for cookies as fewer people buy milk to pair with them.
If there was a supply delay for both cookies and milk, consumers might seek substitutes for both products, resulting in a potential increase in demand for alternative snacks and beverages, and there could also be upward pressure on the prices of cookies and milk due to scarcity, worsening the supply shortage.