If the demand curve for a good is a vertical line at Q = 1, then a decrease in the price of that good will:

Q: When the income of buyers of good X rises the equilibrium price of good X will (assume X is a normal…

A: Normal goods can be defined as those whose demand increases with the increase in income of the…

Q: What does a downward-sloping demand curve mean about how buyers in the market will react to a higher…

A: A downward-sloping demand curve means that buyers in the market will decrease the demand and…

Q: If the price of X decreases and this decreases the demand for Y, then

A: If the quantity demanded of a commodity decrease due to change in the price of another commodity is…

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: 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: 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: described by the inverse demand function p = 10 - 3q and the supply of the good is given by the…

A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.

Q: Will an increase in a price of a good increase the expenditure on that good? Why?

A: The term "expenditure" describes the sum of money that is spent over a predetermined time period on…

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: If an increase in the price of Good X causes a decrease in the demand for Good Y, what can we…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of Good 1 with…

Q: Does a change in price lead to movement along the demand curve or to a shift in the demand curve?…

A: Demand curve(DD) shows the relationship b/w the quantity demanded(Qd) and the price(P) of a good.…

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: If a good is inferior, a rise in its price will cause people to buy more of it, thus violating the…

A: When people's incomes rise, demand for lesser goods falls. As earnings and the economy improve,…

Q: An increase in the price of good B caused an increase in the demand for good C. This indicates that

A: An increase in the price of good B caused an increase in the demand for good C. This indicates that…

Q: If the demand and supply curve for computers is: D = 100 - 6P, S = 28 + 3P Where P is the price of…

A: Demand and supply curves show the combination of price and quantity demanded. The point where these…

Q: Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute…

A: An inferior good is a good for which the demand decreases with an increase in income. For normal…

Q: Given the supply and demand functions of good p = x + 2xs + 12 p = -x3 – 4xp + 68 Calculate the…

A: Given, p=xs2+2xs+12p=-xD2-4xD+68

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: In Mexico, NAFTA had the result of lowering the price of used cars. Consider the effect of the…

A: Substitute goods are products that can be used in place of one another to satisfy a particular want…