Suppose that after your income increases, you consume less fast food. This means:     Fast food is considered an inferior good.      Coke and Pepsi are substitutes.      Coke and fried chicken are complements.      None of the above.

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: Explanation with an example Variables that can shift the demand curve –Income –Normal good…

A: Demand curve shows the graphical relationship between the demand and the price. Demand curve be…

Q: Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income…

A: Given information: Initial income: $100 Final income: $150 Initial spending (demand) on potatoes:…

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: Consider the demand curve for a good is given by: Qp = 500 – 2P and suppose that the good's price is…

A: Given :  Qd=500-2P Price of a good = $100

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: Suppose X and Y are substitutes. If the price of Y increases, the demand for X will most likely…

A: Suppose X and Y are substitutes. If the price of Y increases, the demand for X will most likely…

Q: For an inferior good, the quantity demanded

A: Demand for inferior goods are depending upon consumer's income.

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: Which will not cause a change in the demand for good X?  A) a change in tastes B) a change in income…

A: Answer - Need to find- Which will not cause a change in the demand for good X Evaluating the…

Q: Review price elasticity of demand and supply.  Price elasticity describes the sensitivity between…

A: The substitution effect is caused by a rise in the price of a good and service. The income effect is…

Q: Suppose when a person’s income increases, his or her demand for mac and cheese decreases. What is…

A: There exists a positive relation between income of a consumer and demand for normal good. There…

Q: A consumer buys two goods X and Y. Suppose price of Good X falls. What will be its effect on its…

A: # The consumer will work accordingly to the law of demand which means if price falls then the demand…

Q: A change in which of the following will cause a change in the quantity demanded of coffee? Group of…

A: Change in quantity demanded and change in demand are two different concepts of economics. The change…

Q: What term is used to describe goods that can replace each other to some extent, so that a rise in…

A: Substitute goods: 2 goods X and Y are substitutes if price of good X and demand for good Y are…

Q: The demand of normal good rises when the income of consumer is rising True/False

A: In a market, goods are classified as normal good, inferior good, Giffen good, and so on.

Q: Suppose Pepsi and coke are substitutes. A fall in the price of Pepsi will cause

A: Related goods are of two types:-substitute goods and complements. Substitutes goods are those goods…

Q: Using the following concepts, explain why price and quantity demanded have an inverse relationship.…

A: We have inverse relationship between price and quantity demanded.

Q: There is a sale going on at XYZShop. As a consumer, can you consider the sale or increase in demand…

A: Sale at any shop is a strategy to sell out the inventories that has piled up because the products or…

Q: When other things remain unchanged, what can be expected if Blue-ray movies become significantly…

A: when the demand is more in the market price will be less so here we can choose the correct option…

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: Part 3 (2 points) O See Hint If the price of chicken falls by 2%, the quantity of beef demanded…

A: Cross-elasticity between beef & chicken = % Change in quantity of beef / % Change in price of…

Q: Which of the following shifts a demand curve to the right? The price of the good in question goes…

A: Demand is defined as the seizure backed by the ability and willingness of an individual to buy…

Q: Which of the following statements could explain why demand curves slope downwards? O Most goods are…

A: Learning about how both demand and supply connect may help authorities achieve targeted outcomes for…

Q: Two goods are complements if a decrease in the price of one good   A) decreases the quantity…

A: Complementary goods are specific types of goods that are used together or enhance each other’s value…

Q: Consider two goods: butter and orange marmalade. If the price of orange marmalade increases from $2…

A: Given:

Q: If the quantity demanded of good X decreases, then: *

A: A consumer's desire to buy products and services, as well as their willingness to pay a price for…

Q: If two goods are substitutes, what happens if there is a decrease in the price of one good?…

A: Substitute goods are known or considered to be as those goods which are alternative and which can be…

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: Explain why you think that the demand of one product may diminish as prices are increased

A: As per Law of Demand, the demand of any good decreases with increase in price given other…

Q: The figure illustrates the effect of a decrease in the price of good B on the utility-maximizing…

A: Indifference curve An indifference curve refers to a combination of two goods that provide the same…

Q: Agree or disagree, the price of coffe rices,causing the demand for sugar to decrease. Therefore, the…

A: The market demand for a commodity shifts as a result of a change in consumers income, their tastes,…

Q: Becky only eats out at Macaroni Grill and eats out three times per month. She receives a raise from…

A: The measure that depicts the change in quantity being demanded for a service or good with respect to…

Q: Peanut butter and jam can be either substitutes or it can be compliments. Caitlin likes peanut…

A: The relationship between these items is identified using the cross elasticity of demand. When two…

Q: An individual spends all his income on three goods. He buys 550 units of X at $1 per unit, 425 units…

A: It has been said that the individual spends all his money income on these three goods.

Q: What is one consumer food or service for which in the last 10 to 15 years consumers preference has…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: ita buys only two items form the market—bread and jeans. Her income and the price of bread is…

A: Income= Constant Goods= Bread and Jeans