if consumers would expect the price of a good to increase in the near future in the price of a complement good to decrease at the same time what would happen

Q: Considering peanut butter and jelly as compliment goods, if demand of peanut butter decreases…

A: A good that is being used to add value to another good or could not be used without each other is…

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: Burritos Quantity per week 0 1 2 3 5 6 Total utility 0 21 39 54 63 69 72 Quantity per week 0 1 2345O…

A: Total utility refers to the overall satisfaction or pleasure that a consumer derives from consuming…

Q: Aria consumes only two goods, food and clothing. The marginal utility of the last dollar she spends…

A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…

Q: Explain the relationship between the law of diminishing marginal utility and the law of demand.

A: Law of demand: It explains an inverse relationship between the quantity demanded and price, keeping…

Q: How would universal basic income affect consumer optimum?

A: Universal basic income is a scheme to provide a specific sum of money to all the citizens of a…

Q: What is the law of diminishing utility? Please explain with a few examples.

A: Law of diminishing marginal utility says that as we consume more and more units of same good then…

Q: A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of…

A: Consumer equilibrium:  A consumer attains equilibrium at a point where the per-dollar marginal…

Q: Explain why it is that as the consumer purchases more of a good, her marginal utility falls while…

A: Utility: - Utility is the satisfaction derived by any consumer by consuming a good or service.

Q: What do you mean by the inverse relationship between the quantity demanded for a commodity and its…

A: Inverse relationship between quantity demanded of a commodity and the price implies that as the…

Q: Jerry spends his entire budget on bread and gasoline. His preferences are complete, transitive,…

A: Substitution Effect: This refers to the change in quantity demanded of a good or service as a result…

Q: Using the consumer choice theory, explain how an individual decides what combination of different…

A: The consumer choice theory can be understood as a theory that explains the change in consumer…

Q: The table details the total utility that J.J. gets from going to see basketball and hockey games…

A: Marginal utility is the utility derived from the consumption of additional unit.    Marginal utility…

Q: If the marginal utility per dollar is not the same for each good, the consumer could on goods for…

A: Marginal utility implies the extra utility derived from an extra unit of a product.

Q: When ordering Big Macs, milkshakes, pizza, and other goods, how can you obtain the highest possible…

A: Total utility is the total amount of satisfaction received from consuming a good or service.…

Q: Suppose one have a budget of $1000. The price of one unit of X is $20 and the price of one Unit of Y…

A: Thus, the consumer can purchase 50 units of X, or 100 units of Y, or some allocation in between.…

Q: Refer to the graph below: Units of good Y 30 14 0 A 24 B U₂ 40 Units of good X The price of X is $30…

A: The budget line depicts the combination of X and Y that a consumer can afford under a given budget.…

Q: a)Assume that the typical consumer always spends a small share of her overall budget on Vietnamese…

A: Total customers = 120,000 Price of other products = Pm= $1 Price of Vietnamese Meals = Pv The…

Q: GrubHub, a food delivery service, has recently expanded to your area. The accompanying table…

A: Demand is a consumer's desire and ability to purchase goods and services that they are willing to…

Q: Jane has a utility given as U = 4 C^2 F where C and F are the numbers of cloth and food. The prices…

A: Given utility function U=4C2F                     .........(1) Price of cloth  and food are Pc=4 and…

Q: Explain three assumptions about the properties of consumers’ preferences.

A: Consumer preferences are defined as the tastes of people which is measured through utility. Consumer…

Q: Calculate the Marginal Utility then the MU/P to find Consumer Optimum. How many drink(s) and Big…

A: PLease check the step 2 for solution

Q: Suppose that consumers experience a 5 percent increase in income and purchasing walking shoe…

A: Income elasticity helps to determine whether the good is normal or inferior. Income elasticity…

Q: explain and  Elaborate all possible effects of change in price to the equilibrium of consumer.

A: Consumer choice about what commodity he should consume and in what quantity depends on the price of…

Q: Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer…

A: Introduction Normal Goods : The consumption of things classified as 'normal' rises as income does.…

Q: What is the law of diminishing utility? Explain with proper example.

A: The want satisfying power of a commodity is referred to as the utility.

Q: For a consumer, her demand for one of the products is given by x1 = 0.05m-4p. Her income is $420 and…

A:

Q: Page 4 of 15 3) Suppose I=$1100, Py=$10, Px-$20 and the consumer starts in equilibrium at eo If Px…

A: Approach to solving the question: Detailed explanation:Vertical axis: Price of PXHorizontal axis:…

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: Other things being equal, would a consumer optimum change if the prices of all items consumed rise…

A: A consumer optimum lies at the consumption bundle for which the consumer's utility gets maximized…

Q: What are the two conditions that are met if a consumer is maximizing utility?

A: A consumer is said to be in a state of equilibrium when he or she maximizes his utility, given…

Q: Brayden receives some utility from consuming a bottle of store-brand soda, an inferior good.…

A: Normal goods and inferior goods are concepts in economics that describe how consumer demand changes…

Q: How does a consumer’s optimal choice of goods change if all prices and the consumer’s income double?

A: If prices and consumer’s income will be double then there is no effect in budget constraint and it…

Q: At what point does a consumer maximize utility?

A: introduction Consumers' objective is to maximize their utility. But consumers can not infinitely…

Q: why does a decrease in income cause an increase in both equilibrum price and quanity of an inferior…

A: A market is a place where the buyers and sellers interacts with each other and the exchange of goods…

Q: a. find her most preferred affordable bundle b. Jackson also likes hamburgers and figs. his…

A: Utility of a consumer is represented using indifference curves. The budget constraint is the…