Problem
1. There are four key assumptions underlying the supply and demand model. Name these assumptions.
2. Complements and substitutes of a given good affect the demand for that good. Define complements and substitutes.
3. What simplifying assumption do we make to build a demand curve? Why is the demand curve downward-sloping?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.