Identify the two goods which are substitutes.     Good X and Good Y     It is not possible to distinguish any relationship among the goods.     Good Y and Good Z     Good X and Good Z

Q: When the income of buyers of good X rises the equilibrium price of good X will (assume X is a normal…

A: Normal goods can be defined as those whose demand increases with the increase in income of the…

Q: A decline in the price of good A causes the demand curve for good B to shift to the right.  We can…

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

Q: If a decrease in the price of product X causes the demand for product Z to decrease, then product Z…

A: A normal good follows law of demand which states that there exist inverse relationship between price…

Q: The prices of both goods rise by 20%.  ​For which good does Qd drop the most? Why?​For a narrowly…

A: The substitutes are those goods and services which are substitutable in nature and can be replaced…

Q: Good X:_____ units Good Y: _____ units b. Suppose that the budgented amount falls to $5. This…

A: Equation for consumer budget. px is price of quantity x py is price of quantity y m = income of…

Q: Suppose people buy more of good A when the price of good B rises. These goods are: substitutes…

A: Demand refers to the desire backed by the ability and willingness to pay of the commodity at 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: Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is…

A: There exists a positive relation between income of a consumer and demand for normal good. There…

Q: Equilibrium is achieved when quantity demanded intersect with quantity supplied. Assume aproduct…

A: Hello, Thank you for the question. Since there are multiple subpart questions posted here, as per…

Q: If apples and pears are substitutes in consumption, then a disease that affects apple trees will…

A: Substitute goods can either fully or partly satisfy the same needs of the customers. Therefore, they…

Q: price of the pen is negatively related to the quantity demanded of paper: pen and paper

A: Complementary goods are those goods which complete the demand of each other i.e. which complement…

Q: Consider the market for lattes. If consumers view cappuccinos and lattes as substitutes, what would…

A: Given cappuccinos and latte as substitutes. Therefore as the price of cappuccinos decreases, the…

Q: A decrease in the price of Good Y can result in a decrease of the quantity of Good Y demanded by…

A: Meaning of Substitutes Goods: The term substitutes goods refer to the situation under which there…

Q: Identify the two goods which are substitutes. (Multiple Choice) A) Good Y and Good Z B) Good X and…

A: Substitute goods are goods that can be used as alternates for the same purpose. Soo, these goods…

Q: Coke and Pepsi are perfect substitutes. Initially the price of Coke is higher than the price of…

A: The perfect substitutes are the goods which cannot be used simultaneously and can only be used in…

Q: For normal goods A) the substitution effect of a price decrease will decrease the quantity of the…

A: A normal good is a product which is undergoing a spike in demand leading to a growth in the earnings…

Q: The substitution effect implies that as the price of a substitute good, the demand for the original…

A: Substitute goods are those goods that are consumed in place of each other. For example, Pepsi and…

Q: Agree or disagree, the price of coffe rices,causing the demand for sugar to decrease. Therefore, the…

A: The market demand for a commodity shifts as a result of a change in consumers income, their tastes,…

Q: Coffee and cream are complements. If the price of coffee increases, this will cause:

A: Complement goods are the goods that are consumed jointly. For example, Cars and petrol are…

Q: there are no clase substitutes a for good X good X has no complement goods there are tew close…

A: Demand curve is horizontal when price elasticity of demand for that good is perfectly elastic. When…

Q: An increase in the price of a complement good brings about a(an)        increase in quantity…

A: Complementary Goods Complementary goods are those goods and services which are used together by the…

Q: If income rises and consumers buy more of a particular good, that good is Inferior good Normal good…

A: A normal good is a good whose demand increases with increase in income.

Q: Identify the type of goods which have negative income demand. a. Substitute goods b. Inferior goods…

A: Substitute goods are those goods which can be used alternatively or in place of each other and get…

Q: An increase in demand means that: a. when the price falls, consumers are willing to purchase greater…

A: Demand curve shows inverse relationship between price and quantity demanded.

Q: The price of good A went down by 5% and the quantity demanded of good B went up by 5%. This is…

A: Option C There is an inverse relationship between the price of a complementary good A and quantity…

Q: Good A and B are substitutes. Good A and B are complements. Good A and B are substitutes because the…

A: The demand curve for a good is the graphical representation of the relationship between the price of…

Q: A good with many close substitutes is likely to have relatively demand, since consumers can easily…

A: Price elasticity of demand The Price elasticity of demand is the reaction of demand due to change in…

Q: Suppose the price of good x falls. As a result, the quantity demanded for good x increases for a…

A: Inferior goods are those goods whose demand falls when the consumer Income is rice. People are a…

Q: In case of complementary goods, a rise in price of Good X causes a rise in demand for Good Y. A True…

A: Ans in step 2

Q: A given change in supply will yield a larger change in the quantity demanded the _____   a. more…

A: Answer: Introduction: If there are many substitutes for a good then the demand for that good will be…

Q: What are the examples of complement and substitute goods, where a change in price of one good would…

A: The market demand for a commodity shifts as a result of a change in consumer income, their tasted,…

Q: At the beginning of the pandemic, millions of people became unemployed. Around the same time, the…

A: Based on the type of relationship between income and demand of good, goods are classified as…

Q: What happens to demand for normal goods when there is rise in substitute goods

A: Demand refers to a commodity that a consumer wish to purchase at a given price in a given period of…

Q: What is the type of good if demand increased from 25 to 37 as income increased from 1,500 to 2,000…

A: A good is considered to be normal if the income elasticity is greater than 0. For normal goods,…

Q: The marginal utility of a good or service declines as one more unit is consumed because: (a)…

A: The law of diminishing marginal / minimal utility indicates that as an individual gets even more a…

Q: What is the difference between substitutes and complements? Indicate two goods that are substitutes…

A: Two goods are said to be substitutes of each other if they can be easily replaced with each other.…

Q: Two goods are complements if a decrease in the price of one good. This will lead to: Select one: a.…

A: The prices of complementary or substitute goods also shift the demand curve.

Q: When goods are complements, there is a direct relationship between the price of one and the demand…

A: Complementary goods are those goods that are demanded jointly to fulfil single wants. This means…

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

A: Two goods are said to be complementary when they are jointly demanded. Example Bread and butter.…

Q: Question 14: Market pressures continually swing back and forth, driving towards a particular price…

A: When the market moves from the equilibrium towards the disequilibrium market forces always works to…

Q: Suppose that after your income increases, you consume less fast food. This means:     Fast food is…

A: According to the income effect, a rise in the income of a consumer leads to a fall in the demand for…

Q: Q.1.14 Utility from consuming a good is understood by economists to mean;  (a) how often we…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Consumers will divide their income among all goods so that: the ratio of marginal utility to…

A: Answer: A consumer maximizes its utility where the ratios of marginal utility to the price of the…

Q: The price of good "a" is $5 and the price of good "b" is $15. If the marginal utility of good "a" is…

A: Given information:  Price of a=$5  Price of b=$15    MU of a=20    MU of b=?

Q: The substitution effect. Multiple Choice is generally so weak that its effect cannot be predicted.…

A: The price effect includes income effect and substitution effect. It is the summation of two effects…

Q: Suppose that a decrease in the price of X results in less of good Y sold. What are X and Y called?…

A: The items that are movable and are being sold to a specified buyer are known as goods. These could…