The price of good A went down by 5% and the quantity demanded of good B went up by 5%. This is evidence that A and B are: unrelated goods inferior goods complements substitutes

Q: options:   All the other answers are correct   Availability of close substitutes   Whether the…

A: The formula for price elasticity of demand: Elasticity of demand = -∆Q∆P×PQ

Q: Which of the following are true regarding inferior goods? Choose all that are correct. Group of…

A: Inferior goods are those goods which demand is inversely related to the income change.

Q: When income rises by 10%, the demand for Good A rises by 20%.  From the above, we know Good A is a…

A: The demand for a normal good rise with a rise in the income level whereas the demand falls with the…

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: The quantity demanded of walnuts is greater than the quantity supplied.

A: Answer for 34th Question The correct option is (d) The quantity demand of  walnuts is greater than…

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 price of good X falls by 15 %. As a result, the demand for good Y rises by 30 %. a) What is the…

A: ANSWER STEP-1 (A) Pass elasticity of call for for exact Y with recognize to proper X can be-…

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: The demand for apples is more price-elastic than the demand for fruit as a whole. This is best…

A: The answer is - C.  There are more substitutes for apples than for fruit as a whole.

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: 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…

A: Demand: The amount of a decent that shoppers are willing and ready to buy at different costs during…

Q: If the cross elasticity of demand for two goods, A and B, is -5,0, then this implies that these…

A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a good to a…

Q: unit of good X is sold for RM2, and a unit of good Y is sold for RM4. Both are complementary goods.…

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

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

A: The percentage change in the quantity demanded of a good or  service divided by the percentage…

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: Q7. You are analyzing the demand for good X. Which of the following will result in a shift to the…

A: When demand increases due to other than price factor then demand curve shift to the right. When…

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: The price of cake falls and as a result the demand for ice cream increases. What can we conclude?…

A: As the price of the cake falls makes the demand for ice cream increases, therefore both goods are…

Q: If market demand has increased at every price, shifting the demand curve to the right, a possible…

A: The law of demand states that there is an inverse relationship between price and quantity demanded…

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: 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 good B is a substitute for good A and the price of good B increases, a. the demand for good A…

A: In a market, if two goods are substitutes of each other, they share direct relation between the…

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: If goods A and B are substitutes, a decrease in the price of good B will: O decrease the demand for…

A: For substitutes good, if the price of one good decreases then demand for that good increases and…

Q: If the cross-price elasticity between two goods is negative, these goods are a. Inferior. b.…

A: Separate usage of the complimentary good has almost zero benefit, however if associated with some…

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: 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: A unit of good X is sold for RM2, and a unit of good Y is sold for RM4. Both are complementary…

A: Complementary goods are the ones which are consumed together. Given that good X and good Y are…

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:…

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: When the price of sugar was "low," consumers in the United States spent a total of $3 billion…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: Which of the following statements are true? (i) The absolute value of the price elasticity of demand…

A: (i) The absolute value of the price elasticity of demand is greater when substitutes are available.…

Q: If a good is inferior, an increase in income would shift the a. supply and demand curves leftward.…

A: Income elasticity shows the responsiveness of quantity demanded with respect to change in income.

Q: When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20…

A: Cross-price elasticity: - Cross-price elasticity of demand measures the responsiveness of change in…

Q: didi's demand for goods X is 7, Dewi's demand for goods X is 6, Dono's demand for goods Y is 6, then…

A: Market demand is the summation of all the individual demand of a product.  didi's demand for goods X…

Q: Suppose that a 10 percent increase in the price of normal good Y causes a 5 percent decrease in the…

A: Here, it is given that when there is an increase in price of good Y by 10 percent, there will be a…

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: Goods A and goods B are related to each other, either being substitutes or complements. Now the…

A: i) A and B are substitutes  Two goods are substitutes if only one of them is consumed. When price of…

Q: Motorcycles and bicycles are substitutes under demand. The following questions relate to the bicycle…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Consumer buys 10 units of Good A when the price of Good B is $5. When the price of Good B rises to…

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

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: The demand for good X depends on the price of good Y: DX = 4 – pX + pY. The supply for good X is SX…

A: Cross price elasticity measures the percentage change in quantity demanded of good 1 when price of…

Q: These are good that are scarce relative to the demand for them. a. economic goods b. luxury goods c.…

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