What do you mean by complementary goods give two examples of the goods which are complement to each other?

Q: How is the ordinal utility concept different from the cardinal utility concept

A: The key difference between Cardinal and Ordinal Utility lies within the undeniable fact that…

Q: Apply marginal utility theory to the paradox of value

A: The change in the total utility when one additional unit of good is consumed is called marginal…

Q: Differentiate between normal goods and inferior goods

A: Normal Goods: - Normal goods are those goods whose demand increases when the income of the consumer…

Q: What is the difference between good x as a function of price and income and good x as a function of…

A: Factors affecting demand are demand determinants. Price (P) , income(Y) , utility (U), taste and…

Q: If Cheerios and Milk are complements, consumers consume either one of these goods or the other.…

A: In economics, complement goods are those which are used jointly and can not be used separately. For…

Q: Explain one difference and one example between the Cardinal utility and ordinal utility!

A: Cardinal utility is a Marshallian concept used along with an ordinal utility to gauge the…

Q: Which of the following is the best example of complementary goods?

A: We have to find complementary goods example.

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

A: 9. Substitution effect:   The substitution effect is the change in the price of goods and services…

Q: Suppose consumer consume two goods. Can both goods be inferior? Can one of the goods be inferior?…

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Q: Explain the Marginal Utility Concept with example?

A: Utility:Utility is the want satisfying power of a commodity. The utility is a tool to measure the…

Q: The law of diminishing marginal utility is consistent with the fact that people trade. Do you agree…

A: In economics, various laws and theories are developed to understand the market behavior in different…

Q: What is an inferior good?

A: An inferior good is a type of good which is consumed less when the income increases. For example -…

Q: What are complement goods. State two examples.

A: Goods can be classified as complements and substitute on behalf of how there demand changes with…

Q: what is the normal and an inferior good?

A: Economics goods are those commodities for which there is a direct relationship between the number of…

Q: According to Kahneman and Tversky, what is the major problem they find with the basic tenets of…

A: Introduction According to the prospect hypothesis, investors assess gains and losses separately,…

Q: Can a good be both a complement and a substitute at the same time? If so, provide an example. If…

A: Complementary goods are those which create demand for each other and are of no use alone so that…

Q: What would the Engel curve look like for each of the following three types of goods? Necessary,…

A: Engel curve graphically represents the relationship between the demand for a good and the consumer's…

Q: What is your reflections about law of diminishing marginal utility, law of demand and law of supply?

A: The Law of diminishing marginal utility suggests that the consumer's additional utility derived from…

Q: Is it reasonable to assume that people seek to equate the marginal utility/price ratios of the goods…

A: Introduction: The complete satisfaction gained from consuming an item or service is known as…

Q: Consider a world in which only two goods are sold: x and y, and where good x is inferior. A. |Write…

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Q: If two goods were perfect substitutes of each other, it necessarily follows that

A: To find : what happens when two goods are perfect substitutes.

Q: If the consumer is consuming exactly two goods, and she is always spending all of her money, can…

A: We will use microeconomic concepts such as monotonicity, substitution effects, normal goods and…

Q: Which good(s) is(are) a substitute(s) for Good X? Which is(are) a complement(s)?

A: Qx = 953 - 9Px - 3Py + 9Pz + 2M Where Qx is demand for good X Px is price of good X Py is price of…

Q: Is a good which is inferior for one Consumer is inferior for all the other consumers also?

A: # The low quality goods which follows a negative income effect are inferior goods.  Griffin goods is…

Q: When goods are called homogenous. What does this actually means

A: Homogenous goods is one of the key characteristics of the Perfectly competitive market structure.

Q: John consumes 20 units of food and 24 units of clothing. If food is an inferior good, will John be…

A: Inferior good is the one whose demand declines with increase in income.

Q: Pankti consumes two goods, x and y. Her utility function is given by U(x, y) = ln(xy). (a) Are…

A: If preferences are homothetic, a proportional increase in x and y would result in no change in…

Q: Give an example of substitute pair and an example of complement pair that you have encountered and…

A: The law of demand establishes the inverse relation between the price and quantity demanded, keeping…

Q: Cake and pastries are Substitute goods or complementary goods?

A: If two goods can be used on place of each other than they are Substitute goods and if they are…

Q: Marie has a weekly budget of $24, which she likes to spend on magazines and pies. If the price of a…

A: The budget constraint shows all the combinations of two goods that an individual is able to purchase…

Q: Two students, Nick and Sofia, are discussing normal and inferior goods. Nick says that if Frodo buys…

A: According to the question, Nick and Sofia, two students, are debating the differences between…

Q: Examples of form utility?

A: Utility is defined as the complete satisfaction a consumer derives from the usage of a product or…

Q: What is complementary goods

A: In an open economy, there is a free flow of production of goods and services. All types of goods are…

Q: The Law of Diminishing Marginal Utility is just a theory that has no application to everyday life.…

A: Utility: It means the total satisfaction received from the consumption of goods and services.

Q: Consider two normal goods: pepsi and pizza. if the price of pepsi decreases then the consumption of…

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Q: By selecting a bundle of good X and good Y where MRS = MRT, the consumer is saying A) "I value my…

A: MRS & MRT The marginal rate of transformation (MRT) basically refers to how many units or…

Q: explain the Constructing Utility from Demand in microeconomics

A: The following concepts in relation to Microeconomics is explained as follows:

Q: What unit do economists use to measure the satisfaction individuals get from consuming a good?…

A: The answer is - Utils