when the demand for one commodity falls due to the fall in the price of the other good, the two goods are called

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A: Meaning of Production Function: The term production function refers to the situation under which a…

Q: You attend a movie and notice that there are hundreds of empty seats.what might you conclude about…

A: Equilibrium is attained in the market at the point where the demand and supply intersect each other.…

Q: Consider the market for new textbooks, a normal good.  Assume that the cost of shipping textbooks…

A: Goods whose demand increases with increase with increase in income as purchasing power rises is said…

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A: Supply curve shows the association between the price of commodity and quantity of the commodity that…

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: The law of demand says that all else being equal, as the price rises, the quantity demanded will…

A: Explanation:- Аll  demаnd  сurves  shаre  the  fundаmentаl  similаrity  thаt  they  slорe  dоwn…

Q: Assume that milk and chocolate milk are substitute goods.  If the price of milk falls, then which of…

A: In case of substitute goods price effect is positive. It means that increase in price of one will…

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: Consider the market for gas in the US. Suppose that due to Covid-19 that there is a fall in the…

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Q: Use the table below to answer the question that follows: Price Quantity Demanded Quantity…

A: In the demand and supply model at the equilibrium price level, the quantity demanded of the good…

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A: An object used in combination with another good or service is a complementary good. Usually, when…

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: When The price of good X falls then the demand for Good Y rise.  State where Good X and Good Y are…

A: # substitute goods are those goods which can be used on place of each other and on the other hand…

Q: You may have observed that items such as different brands of aspirin, tomato sauce, or gasoline are…

A: Substitute goods – these are 2 goods which can be used for a similar purpose, that means they are…

Q: Holding other things remaining the same, the law of supply specifies that _______________.     if…

A: Supply curve is upward sloping showing positive relationship between price and quantity supplied.

Q: Assume coke and diet coke are substitutes for consumers. What would happen to the  equilibrium…

A:

Q: A flood decreases the quantity of roses supplied by 90 roses a day at each price. How does the rose…

A: In the free market, equilibrium price and quantity is determined by the forces of demand and supply…

Q: Do you agree or disagree with each of the following statements? Briefly explain your answers and…

A: (a) The price of coffee rises, hence the demand for coffee falls. If the demand for sugar falls…

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…

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

Q: the price of good X is $10 and the price of good Y is $5, how much of good X can the consumer…

A: We know that the equation of budget line is:  Px Qx + Py Qy = M               Where, Px = Price of…

Q: Discuss how the equilibrium price and quantity change when a change in supply occurs and the demand…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: The law of demand states that, ceteris paribus, there is an inverse relationship between the price…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply…

A: The change in equilibrium quantity and price due to change in demand depends upon the elasticity of…

Q: Assume that the price of cheese has decreased and the price of garlic bread (a substitute good) has…

A: Substitute goods are those goods which provide similar utility to the consumers and hence, can be…

Q: According to the Law of Supply, when the price of a good increases, its quantity supplied increases.…

A: In any market, equilibrium corresponds to demand being equal to supply.

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

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A: As per the law of supply, there is direct relationship between the price and quantity supplied of a…

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Q: I need help on question #6.

A: The movement of market is based on the forces of demand and supply and the changes in supply and…

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A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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A: The interaction of the forces of market demand and supply determine the equilibrium price and…

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A: Complimentary goods are the goods that are consumed together such as right and left shoes.

Q: Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the…

A: Price ceiling: - Price ceiling is a government policy of setting the maximum price for any good or…

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A: The answer is part b i.e Inverse relationship between Quantity Demanded and price. The famous  law…

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Q: The prices of the Ralph Lauren Polo line of clothing are considerably higher than comparable quality…

A: Law of Demand shows the inverse relationship between price of a good and the quantity demanded of it…

Q: Assume we are looking at the corn market (corn is a normal good). For each of the following…

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Q: For each of the following scenarios, determine if there is an increase or a demand for the good in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: What would happen to the equilibrium price and quantity of coffee if the wages of coffee-bean…

A: Given: The wages of pickers fell The price of tea fell

Q: Two goods are complements when a decrease in the price of on O decreases the quantity demanded of…

A: As per the law of demand, price has an inverse relationship with quantity demanded

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: Quantity of the good demanded

A: The demand(DD) is an economic principle that reflects the consumer's desire to purchase goods &…