Excel Macroeconomics homework
Data
Observations/location Q P M Ps Pc Q = Quantity demanded of pizza
1 2659 8.65 25500 10.55 1.25 P = price of pizza
2 2870 8.65 25600 10.45 1.35 M = income
3 2875 8.65 25700 10.35 1.55 Ps = price of a substitute
4 2849 8.65 25970 10.3 1.05 Pc = price of a complement
5 2842 8.65 25970 10.3 0.95
6 2816 8.65 25750 10.25 0.95
7 3039 7.75 25750 10.25 0.85
8 3059 7.75 25950 10.15 1.15
9 3040 7.75 25950 10 1.25
10 3090 7.75 26120 10 1.75
11 2934 7.75 26120 10.25 1.75
12 2942 7.75 26120 10.25 1.85
13 2934 7.75 26200 9.75 1.5
14 2517 9.99 26350 9.75 1.1
15 2503 9.99 26450 9.65 1.05
16 2502 9.99 26350 9.6 1.25
17 2557 9.99 26850 10 0.55
18 2586 10.25 27350 10.25 0.55
19 2623 10.25 27350 10.2 1.15
20 2633 10.25 27950 10 1.15
21 2721 9.75 28159 10.1 0.55
22 2729 9.75 28264 10.1 0.55
23 2791 9.75 28444 10.1 1.2
24 2821 9.75 28500 10.25 1.2
Questions
Put the answers to each question on a separate sheet.
1. Plot the quantity demanded at each price. Put Price on the vertical axis and quantity on the horizontal axis. Add a trendline. Format your graph.
a. What is the relationship between Price and Quantity demanded of pizza?
b. Explain this relationship.
2. Plot the quantity demanded at each income level. Put the income on the vertical axis and quantity on the horizontal axis. Add a trendline. Format your graph.
a. What is the relationship between Individual Income and quantity demanded of pizza. (according to this data)?
b. Explain this relationship.
c. Is pizza a normal good or an inferior good?
3. Plot the quantity demanded of pizza against the price of the substitute (gyros). Put Price of the substitute on the vertical axis and quantity demanded of pizza on the horizontal axis. Add a trendline. Format your graph.
a. What is the relationship between the quantity demanded of pizza and the price of the substitute?
b. Explain this relationship.
c. What is an example of a substitute for pizza?
4. Plot the quantity demanded of pizza against the price of a complementary good.
a. What is the relationship between the quantity demanded of pizza and the price of the substitute?
b. Explain this relationship.
c. What is an example of a complement for pizza?