If the price of a good increases, then Select one: A. the demand for complementary goods will increase. O B. the demand for the good will increase C. the demand for the good will decrease O D. None of the above

If the price of a good increases, then Select one: A. the demand for complementary goods will increase. O B. the demand for the good will increase C. the demand for the good will decrease O D. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.

Question

If the price of a good increases, then
Select one:
O A. the demand for complementary goods will increase.
O B. the demand for the good will increase
O c. the demand for the good will decrease
O D. None of the above

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6. Part a and Part B
Consider Figure 1. Which of the following statements is correct? Figure 1 Y U2 U;\ Uo Y2 Y1 Yo X, X1 X2 X x and y are both Giffen goods Ob. x is a Giffen good and y is a normal good Oc x is a Giffen good and y is an inferior good Oa x is a normal good and y is a Giffen good C. Oe x and y are both normal goods Of x is a normal good and y is an inferior good a x is an inferior good and y is a Giffen good Oh. x is an inferior good and y is a normal good x and y are both inferior goods Oi.
If goods A and B are substitutes, an increase in the price of A will result in Select one: a. no difference in the quantity sold of either good O b. None of the answers are correct O c. increases the demand for O d. reduces the demand for B
The distinction betwoen a nomal and an inferior good is O A. when income increases, demand for a normal good increases while demand for an inferior good fals O B. when income increases, demand for a normal good decreases while demand for an infenor good increases C. normgoods are used together while inferior goods are used for the same purposes OD. normal goods are used for the same purposes while inferior goods are used together.
3. As coffee becomes more expensive, Jamal starts drinking tea, therefore quantity demanded for coffee decreases. This is called a. the income effect. b. the change in equilibrium. c. the substitution effect. d. a shift in the demand curve.
What causes the shift in the budget below, from budget Bo to B₁? Good A B₁ Bo Good C O A decrease in the price of good C A decrease in consumer income An increase in the price of good C O A decrease in the price of good A
Figure 4-6Refer to Figure 4-6. The movement from D’ to D could be caused by a. an increase in the price of a complement. b. a decrease in income, assuming the good is inferior. c. a decrease in price. d. buyers expecting the price of the good to fall in the near future.
Please do fast ASAP
1. Which of the following is NOT true of a demand curve? a. It has negative slope. b. It shows the amount consumers are willing and able to purchase at various prices, holding other factors constant. c. It relates the price of an item to the quantity demanded of that item. d. It shows how an increase in price leads to an increase in quantity demanded of a good.
The following options will result to a shifting of the demand curve, EXCEPT, a. Price of commodities O b. Taste and preference of consumers O c. Prices of related goods O d. Income of consumers