What term is used to describe goods that can replace each other to some extent, so that a rise in the price of one good leads to a higher quantity consumed of the other good, and vice versa? Complementary goods Normal goods Inferior goods Substitutes

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: 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: 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: All else equal, which is steeper, the demand curve for a normal good or the demand curve for an…

A: In the case of a normal good, as income increases, the demand for the good also increases, but at a…

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: 4.3. In the market for milk, Nesquik is considered as a complement product and Cremora as a…

A: Cremora is the substitute for milk. If the price of substitutes that is Cremora has gone up, it will…

Q: For an inferior good, the quantity demanded

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

Q: Complementary goods are goods that are closely related. Choose the example below that best describes…

A: The objective of the question is to identify the best example of complementary goods among the given…

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: The effect of a decrease in the price of food, as depicted in the figure, leads us to believe that:…

A: A Giffen good is non luxury product for which demand decreases as the price decreases and vice…

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: 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: 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: Match The Following

A: 1) a measure of how much quantity supplied of a good responds to a change in the price of that good…

Q: If a good is an "inferior good", then people feel inferior when they buy it people buy less of this…

A: Inferior goods refer to those goods which demand decreases due to rise in individual income and…

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: A and B are complementary goods. O A is a normal good and B is an inferior good. O A is an inferior…

A: Cross-price elasticity of demand = % change in the quantity demand/ % change in the price

Q: If the consumer is consuming exactly two goods, and she is always spending all of her money, can…

A: We will use microeconomic concepts such as monotonicity, substitution effects, normal goods and…

Q: Demand curves are generally downsloping.  Using a good of your own choosing as an example, fully…

A: Demand shows the relationship between the price of the product and quantity demanded. As the price…

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: 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: 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: Refer to the graph below: Quantity of Y 160 A B 11 200 X Quantity of X Why doesn't the consumer…

A: Consumer theory is important in economics because it examines how customers maximize satisfaction…

Q: How are price of X (Px) and quantity supply (Qs) related

A: Answer to the question is as follows:

Q: f an increase in income leads to an increase in the demand for sushi, then sushi is a normal good. a…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: Info in images

A: Answer: (1). Given, Lisa's marginal utility per slice of pizza=20 Her marginal utility per…

Q: Agree or disagree, if both coffe and tea are normal goods and the price of coffe increase, it will…

A: Normal goods are those goods which have positive relationship with the income of consumers.

Q: Substitutions for goods cannot always be made. Which of the following is an example of a good that…

A: The question is asking for an example of a good that cannot be substituted with another good. In…

Q: Using the consumer choice theory, explain how an individual decides how to adjust her preferred…

A: Consumer choice theory: It refers to the idea in which the consumers will try to purchase to…

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: The following table shows the amounts of additional satisfaction (marginal utility) that Ross would…

A: Consumer will maximise utility at a point where marginal utility per dollar for two goods are equal.…

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: Define the term substitute goods.    Please explain in details.

A: In economics, goods are things that fulfill human needs and offer utility, such as a customer buying…

Q: explain how utility analysis leads to the law of demand.

A: Demand is a economic rule alluding to a buyer's wants for a specific item or administration. Utility…

Q: When the price of raspberries increases, consumers may switch to strawberries or blueberries. What…

A: Demand is determined by the various factors and one of them is price of related goods . And related…

Q: Two goods are substitutes if a decrease in the price of one good. This will lead to: Select one: a.…

A: Substitute goods are those goods that fully fill the need for other goods, the change in the price…

Q: Suppose that Paolo and Sharon are the only consumers of ice cream cones in a particular market. The…

A: A demand curve of a product depicts the inverse relationship between price and quantity demanded,…

Q: How are Price of X (Px) and quantity  demand (Qd)related?

A: In a market, Quantity demanded is a demand side economic measure that provide information about the…

Q: . 1).Find the marginal utility of each of the two commodities? If the two commodities are free, what…

A: 1).Find the marginal utility of each of the two commodities? If the two commodities are free, what…

Q: What is the difference between substitutes and complements? Indicate two goods that are substitutes…

A: Two goods are said to be substitutes of each other if they can be easily replaced with each other.…