# Question: Suppose that the demand for water balloons fit the function

Suppose that the demand for water balloons fit the function D(p,ps)= .2 p-0.5ps-0.2; where p is the price of water balloons and ps is the price of super soakers (an advanced squirt gun technology).

Based upon this demand curve, are super soakers a compliment or a substitute for water balloons? Demonstrate why.

Based upon this demand curve, are super soakers a compliment or a substitute for water balloons? Demonstrate why.

**View Solution:**## Answer to relevant Questions

Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day. Assume that the supply and demand curves for oil are linear. The current estimates of the price elasticity of ...Corporation XYZ has the following data on labor input and production of commodity Z for each of the eight production periods.1. Use the data on labor input and total output to calculate the marginal and average product of ...The demand function for a Christmas music CD is given by x = 0.25(225 – p2)Where x (measured in units of a hundred) is the quantity demanded per week and p is the unit price in dollars.Evaluate the elasticity at 10. E(10) ...Are civil liberties and homeland security opposing concepts in the United States? Do you need to trade one for the other in a zero sum game?Home Improvement Company, a retail home store, has two major divisions—outdoor and indoor. Here is the data on their income and expenses:Due to the loss, the general manager is considering closing the outdoor division and ...Post your question