Using the information in the above table, any appropriate calculations, or interpretations determine whether Products A and B are substitutes or complements to hospital beds. Provide a reasoning for your determination.
Part II
The following information has been collected for Hospital X for the quantity of beds demanded and the price. In addition, Hospital X has information on the average income for the quantity demanded and information on two products, A and B. However, no one seems to know what these products are.
|
Beds |
Price per Bed |
Average Income |
Price of Product A |
Price of Product B |
|
250 |
1,000 |
40,000 |
400 |
400 |
|
300 |
800 |
50,000 |
500 |
300 |
a.
Using the information in the above table, any appropriate calculations, or interpretations determine whether Products A and B are substitutes or complements to hospital beds. Provide a reasoning for your determination. (5 points)
