Problem 1: There is a major technological advance in the process for producing bicycles.
a. What happens to bicycle supply?
b. What happens to bicycle demand?
Problem 2: Peanut butter and jelly are complements in consumption. The price of peanut butter rises.
a. What happens to the demand for jelly?
b. What happens to the demand for peanut butter?
Problem 3: The number of wheat producers declines.
a. What happens to the supply of wheat?
b. What happens to the demand for wheat?