buys 80 units of the good at a price of 20 per unit. How many units will the consumer buy when price changes to ? 22?

Q: coke and pepsi are substitute goods. if the price of coke skyrockets, then the demand for pepsi…

A: Two goods are said to be substitute goods when one good can be used in place of other. Price and…

Q: How does a consumer determine how much of a good he or she will buy?

A: Consumer- Consumer is a person who purchases goods and services for the maximum satisfaction of…

Q: As a consumer, how can you sustain your needs (basic commodities) despite the challenges in…

A: Answer- Need to find - Ways to utilize your income to satisfy your demands at the most affordable…

Q: Does the income level of a person change their view of substitute goods?

A: Two goods are substitutes of each other if both can be used in place of another. Similar and…

Q: Paper and pen are Complementary/Substitute goods Choose the correct option out of these two

A: We can determine whether two goods are complementary or Substitute by looking at how the change in…

Q: Differentiate between Normal goods and inferior goods

A: # Goods are classified as normal good and inferior based on the responsiveness of their demand due…

Q: suppose the price of an item icreases by 10% that the quanity supplied of that same item  decreases…

A: Given information, Change in price: 10% Change in quantity supplied: 2% To find: relationship…

Q: Use willingness to pay and willingness to sell to determine supply anddemand at a given price

A: The maximum price that the buyer is ready to pay for a unit of commodity rather than go without it…

Q: Why do people purchase more of something when its price falls?

A: Law of demand states that when other things remain the same increasing price leads to reduces the…

Q: The amount of a good that buyers are willing and able to purchase at a given price.

A: Consumer theory is the theory that deals with determination of a point at which a consumer maximizes…

Q: What events might prompt consumers to demand fewer goods at current prices?

A: To determine the events that may prompt consumers to demand fewer goods at current prices.

Q: Suppose that everyone wants a certain good twice as much than before, how much would be demanded at…

A: Given price: $3 Assume that initially x good was demand at price $3 Now as the wants of the good has…

Q: --------  depends only on the utility levels of the households. fill in the blank

A: The consumption function shows the positive relationship between the income and consumption of goods…

Q: , what would be the new price of Shirts while Leyla consumes at point B?

A: The budget line shows the bundles which exactly exhaust the income(M)of the consumer. Here there are…

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: How would marginal utility and market demand be affected by a rise in the price of a contemporary…

A: A complementary product is a product or service that adds value to another product or service. In…

Q: Explain all the reasons why a decrease in a product’s price would lead to an increase in purchases.

A: Demand for a commodity is based on the desire to have that commodity backed by the ability to pay…

Q: The difference between the price a consumer is willing to pay for a product and the price the…

A: Consumer surplus is the benefit that a buyer gets from purchasing a goods and services measured by…

Q: What happens to the price of peaches if consumer income declines?

A: The normal good refers to the good whose demand is positively connected to the level of income.…

Q: When the consumer buys 60 units of quantity of goods at a price of 3 per unit what would be the…

A:

Q: The individual demand will If price falls.

A: At the market place, the behaviour of the individual is explained by the consumer demand theory…

Q: Consumers buy less of a good as its price increases because: а. Production costs have risen.…

A: It is the natural tendency to buy less of that service and goods if their respective prices are…

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: What inferior goods that people buy?

A: Demand for inferior products is often determined by client behavior. Inferior smart refers to…

Q: What refers to the quantity of goods and services that consumers are willing to buy at a given…

A: Willingness and ability both are required in order to be able to purchase a good.

Q: Select one: a. a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper b. an…

A: D0 to D1 represents a leftward shift in demand curve, which is due to a fall in demand.

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: Given the market price of a good, how does a consumer decide as to how many units of that good to…

A: First we need to understand what is marginal utility. Marginal Utility - It is the additional…

Q: What happens to consumption of a normal good when its price increases?

A: Normal goods are those whose demand increments as individuals' purchasing power and incomes rises.…

Q: State any two reasons for why a consumer buy more at a lower price

A: The inverse relationship between price and the quantity demanded is given by the law of demand and…

Q: If Goods are not rationed according to price, what happens?

A: Rationing is done by the government to manage the distribution of goods and services inorder to deal…

Q: A good truck sells six items. Given the menu prices, which item will you buy first?

A: Greater the values of equimarginal utility (marginal utility over prices) more will be the preferred…

Q: other goods

A: The law of demand depicts rise in price cause fall in quantity demanded or vice-versa, keeping…

Q: Which is more important to you, health or unlimited supply for your wants

A: Supply: It refers to the goods and services supplied in the economy to fulfil the demand of people…

Q: When does a consumer buy more quantity of a commodity at a given price? give three points.

A: # The law of demand states that demand and price move in opposite direction. There is an inverse…

Q: A change in which of the following will not shift the demand curve for hamburgers? Price of hot dogs…

A: The shift in the Demand curve: The shift in the demand curve of a commodity occurs due to the other…

Q: What happens to the utility we get from each additional unit we consumed?

A: Utility refers to the want satisfying capacity of the individuals that includes the consumers those…

Q: If butter is the product, what happens when the price of magarine goes up?

A: Butter and Margarine are substitute goods for consumers.  Substitute goods are those goods that are…