Suppose people buy more of good A when the price of good B rises. These goods are: substitutes  compliments  inferior Normal

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: In which case does the demand curve not shift? a. When there is a change in the price of a…

A: In a market, demand curve show two types of effects such that change in quantity demanded and change…

Q: Q10 Suppose there are only two goods, A and B, and that consumer income is constant. If the price…

A: Answer The correct answer is 'Option B' i.e., B is a normal good.

Q: If we have two substitute goods, then a decrease in the price of one will lead to increase in the…

A: In a market, two goods can be related to each other in terms of their demand, such that a change in…

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

A: A good whose demand fall with the increase in income of the consumer is known as an inferior good.

Q: If price consumption curve is positively sloped, two goods are complements two goods are substitutes…

A: The price consumption curve shows the relation between the price and  the consumption of the…

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: 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 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…

Q: where Px and Py denote prices of goods X and Y. Px 2PY where Px denotes price of good X and I…

A: In financial aspects, the utility function estimates the government assistance or fulfillment of a…

Q: Good x Refer to the diagram above. The budget line shift which moves the consumer's equilibrium…

A: Given  The budget line shifted from BC to AC. Due to this consumer's optimal position is to move…

Q: People buy more of good 1 when the price of good 2 rises. These goods are: a. Substitutes b.…

A: The relationship between the two goods depends on the direction of change in demand when the price…

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…

Q: JESTION 27. is a normal good. You observe that both the equilibrium price and quantity of beef have…

A: 27)  Beef is a normal good.  Option D is False as demand curve of beef will be downward negatively…

Q: If Goods A & B are complements, and increase in the price of Good B will:

A: Goods are complements means that two goods are used together in some specified proportions like like…

Q: If the quantity demanded of good X decreases, then: *

A: A consumer's desire to buy products and services, as well as their willingness to pay a price for…

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: 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: 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: As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units…

A: The cross-price elasticity of demand is a concept that measures the responsiveness in the quantity…

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: 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: The price of Good X increases by 25 percent, causing the quantity consumed of Good Y to decrease by…

A: Price elasticity of demand refers to the responsiveness of quantity demanded of a good to a change…

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

A: When the value of cross price elasticity is positive, it means that the two goods are substitutes…

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: If goods X and Y are substitute goods, then an increase in the price of Y, other things constant, O…

A: In a market, when two goods are substitutes, they both can be exchanged for each other as they are…

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: 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: Agree or disagree, if both coffe and tea are normal goods and the price of coffe increase, it will…

A: Normal goods are those goods which have positive relationship with the income of consumers.

Q: Identify the two goods which are substitutes.     Good X and Good Y     It is not possible to…

A: Here, as the demand for good X decreases, the demand for good Y increases. Therefore, these are…

Q: Suppose that a decrease in the price of X results in less of good Y sold. This would mean that X and…

A: Substitute goods are those goods that are used for the same purpose. For example, Tea and coffee are…

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

A: Goods are substitutes when only one of them is considered at a time.

Q: The utility function is x+min(6.y). Income is 12, price of good x is 3. Price of good y decreased…

A: SUBSTITUTION EFFECTS- It means the change in the number of goods with respect to a change in the…

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: Answer the attached question

A: Substitutes goods are used in place of each other while complement goods are used together.

Q: Suppose a decrease in consumer's income causes a decrease in the demand for sausage and an increase…

A: A change in income affects the choice of the consumer. When the purchase of a good does not decrease…

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: Suppose i's preferences are represented by the following utility function: u=x-y.Which of the…

A: U = x-y

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: Good B and Good A are substitutes. If the price of Good A rises, what will happen to the demand…

A: Good B and Good A are substitutes. If the price of Good A rises, consumers substitute good B for…

Q: When price of a pizza decreases from $12 to 10, it is definitely the case that the: A. Income…

A: The demand and supply mechanisms in a country are referred to as the invisible forces in the economy…

Q: In Mexico, NAFTA had the result of lowering the price of used cars. Consider the effect of the…

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

Q: Demand curves have a negative slope. Why? a. firms tend to produce less of a good that is more…

A: Demand curve depicts the inverse relationship between price and quantity demanded, keeping other…