An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction is based on the assumption that:         there are many goods that are substitutes for bicycles.        there are many goods that are complementary to bicycles.        there are few goods that are substitutes for bicycles.        bicycles are normal goods.

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A: The demand changes of one good related to the price changes of another good is known as the cross…

Q: In which of the following statements are the terms "demand" and "quantity demanded" used correctly?…

A: When there is a change in the price of good, it causes movement along the demand or supply curve.…

Q: If Oliver's cross-price elasticity of demand for peanut butter and jelly is negative, then the two…

A: Cross price elasticity of demand is a measure which is used to measure the responsive change in the…

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A: The notion that one good may be substituted for another has obvious economic implications: insofar…

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A: Complementary goods are those goods that are used together or in conjunction. The absence of one…

Q: Which of the following will NOT cause a change in the demand for coffee (illustrated by a shift of…

A: Recall that the demand curve depicts the quantity demanded of a good at different prices. It shows…

Q: If coffee and tea are substitutes, then an increase in the price of coffee a. Shifts the demand…

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Q: A survey found that when incomes increased by 10 percent, the following changes in the quantities…

A: We know Income elasticity=%change in Quantity demanded% change in incomeFirst for spring…

Q: Assume that Figure represents the market for designer jeans. Which of the following would most…

A: Answer: The shift in the supply curve takes place due to changes in factors other than price. The…

Q: Two goods are said to be substitutes if an increase in income results in a decrease in demand. True…

A: A normal good is one whose consumption increases when income increases. The demand curve for a…

Q: A change in which of the following will cause a change in the quantity demanded of coffee? Group of…

A: Change in quantity demanded and change in demand are two different concepts of economics. The change…

Q: With respect to each of the following changes, identify whether the demand curve will shift leftward…

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Q: If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of…

A: Susbtitute Goods: The goods that are similar and can be interchangeably used. for eg. Pepsi and…

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A: If two goods are complementary in nature then increase in price of one good leads to decrease in the…

Q: The first law of demand implies that when the price of good X increases the result will be…

A: The demand theory in the Microeconomics is part of the consumer theory. The consumer theory in the…

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A: Derived demand:- A demand created by the need for a profit or service arising from the demand for a…

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A: A Giffen good is a special type of good because it does not follow the law of demand condition when…

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A: Demand is an economic principle that refers to a consumer's desire to purchase goods and services,…

Q: If with the increase in income the quantity demanded for a good decreases then the good is known as

A: The good is known as INFERIOR GOOD

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A: There is a change in demand when the consumption of consumers change due to change in any factor…

Q: If new substitutes are developed for a product, what will likely happen to the demand curve for that…

A: The price elasticity of demand measures the responsiveness of the quantity demanded of a good or…

Q: If the demand for a good is inelastic, an increase in its price will cause the total expenditure of…

A: Elasticity of demand measures the responsiveness of quantity demanded changes as a result of price…

Q: If electric cars and solar panels are complementary goods, an increase in the price of solar panels…

A: Goods which are consumed together are complementary goods.

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A: The law of demand asserts an inverse relationship between the price of a good or service and its…

Q: As the price of GOOD A increases by 20%, the quantity demanded of GOOD B increases by 10%. What is…

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A: Income= Constant Goods= Bread and Jeans

Q: The substitution effect implies that as the price of a substitute good. (a) increases; decreases (b)…

A: In the mentioned question we have been ask about the relationship between two goods. Substitute…

Q: If goods A and B are substitutes, an increase in the price of good B O increase the demand for good…

A: Answer: option d (decrease the demand for good B and increase the demand for good A) Explanation:…

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A: Demand for a good represents the quantity of the good that the consumers are willing to buy at a…

Q: If the demand for coffee decreases as income decreases, coffee is a(n): complementary good.…

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A: Income elasticity of demand: It is the measurement of the change in the quantity demanded of a…

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A: Microeconomics is a branch of economics that deals with the behaviour, consumption and allocation…

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Q: As consumers experience an increase in income, the demand for designer clothes increases and the…

A: Explanation  As consumers experience an increase in income, the demand for designer clothes…

Q: f the demand curve for Good A shifts leftward when the price of Good B decreases, these two goods…

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Q: What will happen to demand curve for normal goods when there is rise in price of substitute goods

A: A replaceable good is a commodity or service that buyers perceive to be exactly the identical as or…

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A: When the price of used cars in Mexico fell the Mexican demand for new cars decrease. This would…

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A: In an economy, resources are scarce and Human wants are unlimited so resources should be allocated…