3. a) Which one of the following would cause demand to increase? the price of a complementary good increased the price of a substitute product decreased household incomes increased and the good was an inferior good household incomes decreased and the good was a normal good none of the above. * c) e)

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Trinidad TremblayLv2

29 Mar 2018

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Related questions

If the demand for a good increases when people's incomes increase, ___________

a. the good is an inferior good.

b. the law of demand is violated.

c. the good's demand curve must be slope upward.

d. the good is a normal good.

e. the good is a substitute good for an inferior good.

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4. [3 Marks] You have noticed an increase in both the (equilibrium) price and quantity transacted of a good. Which of the following is a plausible explanation? A. Incomes have fallen and the good is an inferior good. B. A price of a close substitute has fallen. C. There has been an improvement in the technology used to produce this good. D. The price of a key input used in this good's production has increased. E. The price of a key input used in this good's production has decreased.

The X-Corporation produces a good (called X) that is a normal good. Its competitor, Y-Corp., makes a substitute good that it markets under the name âY. â Good Y is an inferior good.

â¨a. How will the demand for good X change if consumer incomes increase? â¨

b. How will the demand for good Y change if consumer incomes decrease?

c. How will the demand for good X change if the price of good Y decreases?

d. Is good Y a lower-quality product than good X? Explain. â¨