Suppose a decrease in consumer's income causes a decrease in the demand for sausage and an increase in the demand for cheese. Which good is an inferior good and high is normal explain your answer

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A: The forces of demand and supply determine the equilbrium price and quantity of a good sold in the…

Q: In December, the price of Christmas trees rises and the number of trees sold also rises.  Do you…

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Q: According to a recent study, "Stricter college alcohol policies, such as raising the price of…

A: A complementary good or service is an item used in conjunction with another good or service.…

Q: of the following events could shift the demand curve for gasoline to the left? Group of answer…

A: GENERAL DETERMINANTS OF DEMANDGood’s own price (P) is the key determinant of demand• Other…

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: 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…

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A: The relationship between the two goods depends on the direction of change in demand when the price…

Q: Q7. You are analyzing the demand for good X. Which of the following will result in a shift to the…

A: When demand increases due to other than price factor then demand curve shift to the right. When…

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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: Q.5.1 Explain, with the aid of a graph, the effect of an increase in income on the equilibrium price…

A: Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: Which of the following will cause the demand curve for a good to shift to the right?   Question 50…

A: When factors impacting demand, other than the price of the commodity, shifts the demand curve. The…

Q: The price of cake falls and as a result the demand for ice cream increases. What can we conclude?…

A: As the price of the cake falls makes the demand for ice cream increases, therefore both goods are…

Q: Do you agree or disagree with each of the following statements? Briefly explain your answers and…

A: (a) The price of coffee rises, hence the demand for coffee falls. If the demand for sugar falls…

Q: If Goods A & B are complements, and increase in the price of Good B will:

A: Goods are complements means that two goods are used together in some specified proportions like like…

Q: Which of the following is most likely shift out the demand curve for mobile phone calls? Group of…

A: The most likely shift out the demand curve for mobile phone calls  can be a great advertising…

Q: Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close…

A: A Giffen good is a special type of good because it does not follow the law of demand condition when…

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: If with the increase in income the quantity demanded for a good decreases then the good is known as

A: The good is known as INFERIOR GOOD

Q: A change in a relevant factor other than the price of the good itself causes a ________ the demand…

A: Demand curve: It shows a relationship between price and the quantity demanded of a good or service…

Q: The law of demand states that, ceteris paribus, there is an inverse relationship between the price…

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

Q: What can cause the market demand curve for oatmeal to shift leftward (a decrease in demand)? An…

A: What can cause the market demand curve for oatmeal to shift leftward (a decrease in demand)?

Q: Which of the following would NOT decrease the demand for steak? A. a fall in the price of chicken (a…

A: Demand curve shows an inverse relationship between price and quantity demanded. It slopes downward.

Q: Suppose the price of muffins decreases. (Assume that people regard donuts and muffins as…

A: When two or more goods can be interchangeably consumed, they act as substitutes for each other. The…

Q: If income rises and consumers buy more of a particular good, that good is Inferior good Normal good…

A: A normal good is a good whose demand increases with increase in income.

Q: Identify the flaw in this analysis: “If more Bahamians go on a low-carb diet, the demand for pasta…

A: The statement is wrong. When people change their preferences the demand for the product also…

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: Let’s look at the market for sophisticated laptop computers. When income increases, the demand for…

A: At a marketplace, a good is an inferior good is its demand has inverse relationship with the income…

Q: If goods X and Y are substitute goods, then an increase in the price of Y, other things constant, O…

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Q: If there is a fall in the price of a close substitute for potato crisps, such as tortilla chips,…

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

Q: The substitution effect implies that as the price of a substitute good. (a) increases; decreases (b)…

A: In the mentioned question we have been ask about the relationship between two goods. Substitute…

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: Suppose that you discover that, ceteris paribus, when the price of tomatoes increases, the demand…

A: Complementary goods - goods which are used together i.e. shocks right and left mobile and sim…

Q: Which of the following will cause a movement when looking at an individual’s demand curve?…

A: While a change in price causes a movement along the existing demand curve, a change in non-price…

Q: Which of the following does NOT decrease the demand for Oreos? An increase in the price…

A: There is a huge difference between the change in quantity demanded and the change in the demand for…

Q: The law of demand shows that: a. the demand curve is positively sloped. b. there…

A: The answer is part b i.e Inverse relationship between Quantity Demanded and price. The famous  law…

Q: Which one of the following statements is correct? A. A rise in the price of a good will cause the…

A: Statement A that "A rise in the price of a good will cause the supply curve of that good to shift to…

Q: Consider the market for pizza in Starkville. Which of the following will shift the demand curve for…

A: Demand for a good represents the quantity of the good that the consumers are willing to buy at a…

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: Suppose a 4 percent increase in income results in a 2 percent decrease in the quantity demanded of a…

A: A good is considered to be inferior when an increase in income causes a decrease in the demand for…

Q: Assume we are looking at the corn market (corn is a normal good). For each of the following…

A: Here, it is given that corn is a normal good due to which it's demand will positively linked with…

Q: For each of the following scenarios, determine if there is an increase or a demand for the good in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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: Which of the following will not cause a good’s entire demand curve to shift? Group of answer…

A: A demand curve is a line that provides information about the behavior of demand-side participants…