Set all variables to their baseline values.

1) How much spaghetti is demanded when its price is $25 per plate?

2) How much is demanded when price is $15 per plate?

Set all variables to their baseline values.

3) When the price of spaghetti is $25 per plate, how much do consumers want to spend on

spaghetti?

Set all variables at their baseline values.

4) When the price of spaghetti is $15 per plate, how much do consumers want to spend on

spaghetti? [Compare your answer to the answer to 3).]

Set all variables to their baseline values.

5) With the price of spaghetti at $12, how much does demand increase when income rises to

$25,000?

6) Set all variables to their baseline values and set the price of spaghetti to $12. Increase the

price of wine to $35 per bottle. Does the demand for spaghetti increase or decrease?

7) Based on the analysis of the previous question, by how much did the demand for spaghetti

change when the price of wine increased from $20 to $35 per bottle?

8) Set all variables to their baseline values, and set the price of spaghetti to $12. What would

income have to be to make demand increase to 5000?

9) Set all variables to their baseline values, and set the price of spaghetti to $12. What would

the price of wine have to be to make demand equal to 2,000?

10) Set income to $30,000, and all other variables at their baseline values. What would the

price of spaghetti have to be to make demand equal to 4,000?

11) Set income to $30,000, and all other variables to their baseline values. What would the

price of spaghetti have to be to make demand equal to 5,000?

12) Are tacos and spaghetti substitutes or complements in this problem?