Suppose that you discover that, ceteris paribus, when the price of tomatoes increases, the demand for bleu cheese decreases. From this you conclude that: tomatoes and blue cheese are substitutes. tomatoes are inferior goods and blue cheese is a normal good. tomatoes and blue cheese are complements. the demand curve for tomatoes has shifted to the left.

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

Answered: Suppose that you discover that, ceteris…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that you discover that, ceteris paribus, when the price of tomatoes increases, the demand for bleu cheese decreases. From this you conclude that:

		tomatoes and blue cheese are substitutes.
		tomatoes are inferior goods and blue cheese is a normal good.
		tomatoes and blue cheese are complements.
		the demand curve for tomatoes has shifted to the left.

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