Transcribed Image Text:Goods A and B are substitutes in production. The price of good A rises. As a result, the equilibrium price of good B and the equilibrium quantity. A) rises; decreases B) falls; increases C) falls; decreases D) rises; increases
Q: explain the difference between the following: complements and substitutes in production…
A: a) Complements and substitutes in production In production, complement goods are the goods that are…
Q: Assume coke and diet coke are substitutes for consumers. What would happen to the equilibrium…
A: Substitute Goods: The goods that can be substituted for one another are known as substitute goods.…
Q: When there is an decrease in the demand for a good, this can be expected to cause in the equilibrium…
A: Demand represents the volume of goods and services that the consumers are willing to buy at…
Q: If a producer has an option to use resources to produce either good X or good Y, then these goods…
A: Complements are defined as those goods which are consumed together or jointly whereas substitutes…
Q: Assuming that fish and chips are complementary products, if the price of fish rises, then the demand…
A: Complementary goods are the ones which have to be used together by people. In this question, fish…
Q: Of the following, which situation would cause the shift of the supply curve from S1 to S2? D P1 P2…
A: A shift in supply curve may cause due to various such as change in number of firms, raw material,…
Q: Leather jackets and leather belts are ________. A fall in the price of a leather jacket will…
A: According to the law of demand, as the price rises, the quantity demanded falls. The link between…
Q: Butter and margarine are consumption substitutes. The supply of margarine increases. This should A.…
A: Given: There are two goods, butter and margarine. These goods are consumption substitutes.
Q: Two goods are said to be substitutes if an increase in income results in a decrease in demand. True…
A: A normal good is one whose consumption increases when income increases. The demand curve for a…
Q: If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of…
A: Susbtitute Goods: The goods that are similar and can be interchangeably used. for eg. Pepsi and…
Q: Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute…
A: The answer is - (Option B) Decrease in both equilibrium price and quantity
Q: How do changes in income affect the demand for a good? Also show your answer with a graph.
A: A consumer's desire to buy goods and services, as well as their readiness to pay a price for such…
Q: People buy more of good 1 when the price of good 2 rises. These goods are: a. Substitutes b.…
A: The relationship between the two goods depends on the direction of change in demand when the price…
Q: The first law of demand implies that when the price of good X increases the result will be…
A: The demand theory in the Microeconomics is part of the consumer theory. The consumer theory in the…
Q: If apples and pears are substitutes in consumption, then a disease that affects apple trees will…
A: Substitute goods can either fully or partly satisfy the same needs of the customers. Therefore, they…
Q: The equilibrium prices X and Y for two goods satisfy the equations 4x + 2Y = 10 4x -4Y =15
A: Linear equation with two variables : It is the equation which have power in it which is equal to 1 ,…
Q: When due to change in price of a good, total expenditure on the good remains unchanged, then demand…
A: # If we talk about a rise in price of a good whose demand is elastic then in that case the total…
Q: if good F and G are substitutes and the cost of a factor of production used in the production of…
A: When one good could in turn be used in place of another good and could be produced while making use…
Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B…
A: Substitute goods are those goods that can be consumed by an individual in place of each other by the…
Q: As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units…
A: The cross-price elasticity of demand is a concept that measures the responsiveness in the quantity…
Q: The price of Good X increases by 25 percent, causing the quantity consumed of Good Y to decrease by…
A: Price elasticity of demand refers to the responsiveness of quantity demanded of a good to a change…
Q: If good B is a substitute for good A and the price of good B increases, a. the demand for good A…
A: In a market, if two goods are substitutes of each other, they share direct relation between the…
Q: If the demand curve for product A moves to the right, and the price of product B increases, it can…
A: The law of demand asserts an inverse relationship between the price of a good or service and its…
Q: Resource X is necessary to the production of good Y. If the price of resource X rises, the…
A: Opposing economic variables gravitate towards their natural condition, resulting in economic…
Q: As the price of GOOD A increases by 20%, the quantity demanded of GOOD B increases by 10%. What is…
A: When the value of cross price elasticity is positive, it means that the two goods are substitutes…
Q: Beef is a material for beef meatball. We observe that the equilibrium quantity of beef meatball…
A: The market is a place where the buyers and the sellers meet together and decide about the quantity…
Q: Good A and B are substitutes. Good A and B are complements. Good A and B are substitutes because the…
A: The demand curve for a good is the graphical representation of the relationship between the price of…
Q: If goods X and Y are substitute goods, then an increase in the price of Y, other things constant, O…
A: In a market, when two goods are substitutes, they both can be exchanged for each other as they are…
Q: If the price of good A increases relative to the price of substitutes B and C, the demand for
A: If the price of good A increases relative to the price of substitutes B and C, the demand for B and…
Q: If goods A and B are substitutes, an increase in the price of good B O increase the demand for good…
A: Answer: option d (decrease the demand for good B and increase the demand for good A) Explanation:…
Q: Identify the two goods which are substitutes. Good X and Good Y It is not possible to…
A: Here, as the demand for good X decreases, the demand for good Y increases. Therefore, these are…
Q: If the price of petroleum is rising, we can expect both the supply curve and demand curve to shift…
A: Answer to the question is as follows :
Q: A factory uses its resources to produce leather jackets and leather belts. If the price of a leather…
A: Complements in production are those goods which produced jointly from the same input. This…
Q: Assume that tea and lemons are complements and coffee and tea are substitutes. Say that the…
A: Price ceiling: - Price ceiling is a government policy of setting the maximum price for any good or…
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.…
Q: When the price of one good affect the demand for another good, then the goods are likely to be…
A: The demand for a good gets affected by its price and other determinants such as price of related…
Q: Goods A and goods B are related to each other, either being substitutes or complements. Now the…
A: i) A and B are substitutes Two goods are substitutes if only one of them is consumed. When price of…
Q: If two commodities are substitutes, a change in the price of the one, ceteris paribus, cause a…
A: Substitute goods refer to the goods that can be replaced by other goods as they serve some purpose…
Q: Motorcycles and bicycles are substitutes under demand. The following questions relate to the bicycle…
A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…
Q: Suppose a decrease in consumer's income causes a decrease in the demand for sausage and an increase…
A: A change in income affects the choice of the consumer. When the purchase of a good does not decrease…
Q: f the demand curve for Good A shifts leftward when the price of Good B decreases, these two goods…
A: Change in demand occurs due to change in non price factors. Change in quantity demanded occurs due…
Q: Assume that the price of product X rises by 13 percent and the quantity supplied of X rises by 15…
A: The markets are the place where the buyers of various goods and services tend to meet and interact…
Q: If the demand curve for a good is a vertical line at Q = 1, then a decrease in the price of that…
A: Demand curve represent the quantity demanded in the graphical format.
Q: Good B and Good A are substitutes. If the price of Good A rises, what will happen to the demand…
A: Good B and Good A are substitutes. If the price of Good A rises, consumers substitute good B for…
Q: Given: Qd = 800 - 4P Qs = 8P - 400 What is the equilibrium price of good x
A: The demand for a quantity(Qd) depends upon the price of that quantity and also on other factors such…
Q: If two goods are substitutes, a decline in the price of one will cause an increase in the demand for…
A: There are different types of goods based on their use, consumer preference & taste, and…
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