For normal goods A) the substitution effect of a price decrease will decrease the quantity of the good demanded while the income effect of a price decrease will increase the quantity of the good demanded. B) the substitution and income effects of a price decrease will both increase the quantity of the good demanded. C) the substitution and income effects of a price decrease will both decrease the quantity of the good demanded. D) the substitution effect of a price decrease will increase the quantity of the good demanded while the income effect of a price decrease will decrease the quantity of the good demanded.

Oreos and orange juice have a negative cross-price elasticity. So, the two goods are O necessities. O complements. normal goods. inferior goods.

Find the quantity demanded 21 all the way too two the other questions are what you need like the data

Arya only consumes two goods: X and Y. When the price of X changes, the income effect and the substitution effect for X move in opposite directions. In addition, the income effect for X dominates the substitution effect. X must be: a) a Giffen good for Arya. b) an inferior good for Arya. c) a normal good for Arya. O d) perfect substitutes for Arya. O e) Both a and b are true.

6. Part a and Part B

Which of the following statements is true for a Giffen good?   (a) Following a fall in the price of the good, there will be a decrease in the quantity demanded due to the substitution effect; an increase in the quantity demanded due to the income effect; the substitution effect will outweigh the income effect. (b) Following a fall in the price of the good, there will be an increase in the quantity demanded due to both the substitution and income effect and the two effects will therefore reinforce each other. (c) Following a fall in the price of the good, there will be an increase in the quantity demanded due to the substitution effect; a decrease in the quantity demanded due to the income effect; the substitution effect will outweigh the income effect. (d) Following a fall in the price of the good, there will be an increase in the quantity demanded due to the substitution effect; a decrease in the quantity demanded due to the income effect; the income effect will outweigh the…

Two goods are complements when a decrease in the price of one good O decreases the quantity demanded of the other good. O decreases the demand for the other good. O increases the quantity demanded of the other good. increases the demand for the other good.

. Matilda is downloading music and videos from an online site. She is currently buying three music downloads that cost $3 each and two video downloads that also cost $3 each. The table below indicates what she reports as the marginal utility of the last music download and of the last video download in this combination of purchases.      Quantity Price per Download MU per download Music downloads 3 $3 60 Video downloads 2 $3 45   As an assignment for her Microeconomics course, Matilda used the marginal utilities that she gave to her 3rd music download and her 2nd video download to complete the Experiment Tally Sheet below. Her available budget was $19.00.   Downloads of mu (score) from 1 to 100 Price of each $3.00  Money spent on  Downloads of  mu (score) from 1 to 100 Price of each $3.00 Money spent on  Total Money  Total Budget  music mu mu/$ music videos mu mu/$ videos Spent Remaining 1st ? ?…

Question 3