If a decrease in the price of product X causes the demand for product Z to decrease, then product Z is:     Normal good     Complementary good     Substitute good     Inferior good

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 orange juice is considered a normal good, then an increase in income in Ventura will have the…

A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes does…

Q: An economist notes that demand for Brand A increases when the price of Brand B decreases. We can say…

A: Demand for a good can change due to change in price of its own good as well as change in price of…

Q: An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes…

A: Normal goods are goods with positive income elasticity of demand. This means that a rise in income…

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

A: In a market, when two goods are substitutes, their cross price elasticity is positive as the…

Q: If we observe an increase in the price of a good and an increase in the amount of the good bought…

A: If initially the demand curve is D and the supply curve is S, the equilibrium price and quantity are…

Q: If two goods are complements, a decline in the price of one will cause an increase in the demand for…

A: The cross elasticity shows the response of the change in the price of one commodity on the demand of…

Q: If coffee and cream are complements, an increase in the price of coffee will cause the demand for…

A: Complementary goods are the goods that are consumed together. In this case cream and coffee are…

Q: If an increase in income results in a decrease in the quantity demanded of a good, then the good is…

A: Consumer income is a factor which affects the demand for a good since it dictates how much of a good…

Q: . When supply of a commodity increases without change in price, it is called

A: Supply of a commodity is related to the price of a commodity directly, but also depends on several…

Q: Which of the following will cause the demand curve for a good to shift to the right?   Question 50…

A: When factors impacting demand, other than the price of the commodity, shifts the demand curve. The…

Q: or a particular good, a 2 percent increase in price causes a 12 percent decrease in quantity…

A: Here Percentage change in Price is 2% and the Change in Quantity demanded is 12% if calculate the…

Q: Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close…

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

Q: Pizza is a normal good if the demand a. for pizza rises when income rises. b. for pizza rises when…

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

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 income increases or the price of a complement falls,A) the supply curve of a normal good shifts…

A: If income increases or the price of a complement falls,A) the supply curve of a normal good shifts…

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.

Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B…

A: Substitute goods are those goods that can be consumed by an individual in place of each other by the…

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: 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: If the demand curve for product A moves to the right, and the price of product B increases, it can…

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

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: What is one consumer food or service for which in the last 10 to 15 years consumers preference has…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

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: 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: Is the following true: ‘the market demand function of a good will only be upward sloping if the good…

A: There are different types of goods sold on the consumer market. These goods include normal goods,…

Q: Inferior goods are best defined as      A) goods that only those who are relatively poor purchase.…

A: Inferior goods are defined as those goods whose demand has an inverse relationship with the income…

Q: Demand for a good will always rise when the price of a complementary good falls.the price of a…

A: Complementary goods are those goods that are consumed jointly or in conjunction. This means…

Q: An increase in the price of good B caused an increase in the demand for good C. This indicates that

A: An increase in the price of good B caused an increase in the demand for good C. This indicates that…

Q: . According to the law of demand, when all other factors are held constant, the higher the price,…

A: Answer: Correct option: False (B) Explanation: Law of demand: According to the law of demand there…

Q: The market demand curve A) is upward sloping. B) is the vertical sum of individual demand curves. C)…

A: The Market demand curve can be defined as the horizontal summation of the individual demand curves.

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

A: Change in demand occurs due to change in non price factors. Change in quantity demanded occurs due…

Q: Cross elasticity of demand, which measures the relationship between substitutes and complements, is…

A: Cross price elasticity of demand states the measure of relationship between the two goods. If the…

Q: When demand of a commodity is greater than its supply at a given price then it is known as

A: # In a market the market equilibrium occurs at the point where the demand and the supply are equal.…

Q: If the demand curve for a good is a vertical line at Q = 1, then a decrease in the price of that…

A: Demand curve represent the quantity demanded in the graphical format.

Q: The Demand for a good always increase with the increase in the prices of other goods True/False

A: A good can be a substitute for the other good or it can be a complementary good for the other type…

Q: A simple supply curve shows a relationship between the Multiple Choice price of a good and the…

A: Supply curve is upward sloping for a good.

Q: Consider the demand curve below. If the price of the good were to decrease, holding other…

A: Law of demand states the inverse relationship between price and quantity demanded keeping other…

Q: If textbooks and study guides are complements, then an increase in the price of textbooks will…

A: Complementary goods:- A complimentary commodity is one that is utilised in conjunction with some…

Q: During 2009, incomes fell sharply due to the financial crisis of 2008-2009. This change likely led…

A: The normal goods are goods which demand increases with increase in income that means income effect…