Please explain the 2nd question
Dear Student,
As there is a decline in the price of complementary goods as well as improvement in quality the demand will increase for good Z and also of good Y ad therefore the demand curve of good Z will shift towards right from D1 to D2. Technological advancement helps to reduce the cost of production and thereby increasing the supply of Good Z. The supply curve will shifts towards the right from S1to S2. The new equilibrium of curves D2 and S2 in Point 7.
Regards,
As there is a decline in the price of complementary goods as well as improvement in quality the demand will increase for good Z and also of good Y ad therefore the demand curve of good Z will shift towards right from D1 to D2. Technological advancement helps to reduce the cost of production and thereby increasing the supply of Good Z. The supply curve will shifts towards the right from S1to S2. The new equilibrium of curves D2 and S2 in Point 7.
Regards,