what happens if both masks and sanitizers are normal goods. Illustrate what happens if a mask is an inferior good.

Q: Considering peanut butter and jelly as compliment goods, if demand of peanut butter decreases…

A: A good that is being used to add value to another good or could not be used without each other is…

Q: Suppose a consumer had an income of $100 and spends $50 on potatoes. Suppose now that his income…

A: Given information: Initial income: $100 Final income: $150 Initial spending (demand) on potatoes:…

Q: If the good is an older used version of the IPhone, .e.g. the IPhone 5 which costs less than $100 on…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: How do we call a good with income elasticity less than zero?

A: Income elasticity measures the change in quantity demanded to the change in income. It tells us by…

Q: When Sam has an income of $1,000, he consumes 30 units of good A and 50 units of good B. After Samâs…

A: An individual usually consumes according to one's budget constraint. Here, the person has income of…

Q: 4. Describe what is meant by a normal good. Provide a real-life example in your own words. What is…

A: There is a difference between the two types of goods; normal goods and inferior goods which we are…

Q: Jerry spends his entire budget on bread and gasoline. His preferences are complete, transitive,…

A: Substitution Effect: This refers to the change in quantity demanded of a good or service as a result…

Q: How can you test whether a good is normal, inferior, or neutral? b) How can you test whether two…

A: Good is considered "economic good" when it is useful to the people and yet scarce compared to the…

Q: Dan and Georgie share a trail behind their homes that leads to the beach. It's easier to go to the…

A: A public good is that which is non rival that is, consumption by one does not affect amount…

Q: Price (dollars per can) 2.50 2.00 1.50 1.00 0.50 2 3 Quantity (cans of soda per day) 4 The graph…

A: Graph shows us Price on the Y-axis and Quantity on the X-axis. We have been given Price of soda…

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: Using the table below, fill in the quantity of Good X where the consumer will maximize his/her…

A: A consumer will maximize the utility where the law of equi marginal utility is satisfied and for the…

Q: Becky only eats out at Macaroni Grill, and she eats out three times per month. She receives a raise…

A: Answer: Given, Income level (per year) Quantity (or eating out per month) $31,900 (Y1) 3 (Q1)…

Q: Distinguish between an inferior good and a normal good. Is a good which is inferior for one consumer…

A: Introduction Normal Goods : The consumption of things classified as 'normal' rises as income does.…

Q: You are choosing between two goods, X and Y, and your marginal utility from each is shown in the…

A: Dear student, you have asked multiple sub-part questions in a single post. In such a case, I will be…

Q: 3. A person who consumes wine and cheese gets a raise, so his income increases from $3000 to $4000.…

A: Inferior goods are those goods, whose demand will decrease, when the income of the consumer…

Q: Maria graduates from college and her income increases by $45,000. Nothing else changes. Maria…

A: Given that Maria's income increases by $45,000 and nothing else changes. Maria consumes three goods,…

Q: ос

A: Utility maximizing condition at given budget constraints Slope of Budget line= Slope of indifference…

Q: 5. Which is the consumer's demand curve for X in the following graph if the price of Y is $50. In…

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

Q: THE INFORMATION BELOW PROVIDES PRICE AND MARGINAL UTILITY DATA FOR EACH Of THE PRODUCTS SHOWN UNIT…

A: The marginal utility is described as the added utility satisfaction a consumer receives from having…

Q: 27. When Sam has an income of $1,000, he consumes 30 units of good A and 50 units of good B. After…

A: Goods are items which satisfy human wants and in turn provide utility.For instance,to a consumer who…

Q: Barron used to make $2,500 a month and eat sushi three times per month. Now he is making $3,500 a…

A: We know that, Income elasticity would be ratio of  percentage change in quantity demanded to…

Q: 1. Suppose someone's budget is $780, and it is fully spent on buying Product A. The price of this…

A: Income available to spend on product A is $780 Price of product A is $26 => Units purchased with…

Q: Brayden receives some utility from consuming a bottle of store-brand soda, an inferior good.…

A: Normal goods and inferior goods are concepts in economics that describe how consumer demand changes…

Q: A) hot dogs are an inferior good, but not a Giffen good, for all levels of income. B) hot dogs are a…

A: Giffen  is just inferior goods. When  income effect  becomes greater than substitution effect…

Q: Mary makes the following choices of X1 and X2 when prices and income are as follows:…

A: Income refers to the money or financial gain that an individual, household, business, or entity…

Q: 4. Adam's income declines, and as a result, he buys more calamansi juice. Is calamansi juice an…

A: Demand is the quantity a consumer is willing and able to purchase a good at a given price. The…

Q: Suppose if the price of a good is $12, the quantity demanded is 50 units; when the price is $10, the…

A: Price elasticity of demand is a measure of the change in the quantity purchased of a product in…

Q: Individual and Market Demand - End of Chapter Problem Suppose that, holding prices constant, Alice…

A: An Engel curve is a graphical representation of the relationship between a household's income level…

Q: Imagine your income increases and you find that you buy more coffee. What is true about your income…

A: Income elasticity of demand is used to check the relationship between a change in quantity demanded…

Q: Suppose Alex has income of $100 per month. He only consumes pizza and cell phone minutes. Illustrate…

A: Budget constraint: Budget constraint is a utility concept that is used in maximizing the utility…

Q: Suppose reports indicate that natto is the new health food, both for the body and the mind. This…

A: The law of demand is a fundamental principle in economics that describes the relationship between…

Q: The figure below shows a consumer maximizing utility at two different prices (the left panel) d the…

A: Utility is the satisfaction that is derived from the consumption of goods or services. The utility…

Q: You are choosing between two goods, X and Y, and your marginal utility from each is shown in the…

A: Marginal utility is the additional utility earned from consuming an additional unit of the good

Q: We can divide normal goods into two types: Those whose income elasticity is less than one and those…

A: The change in quantity demanded with a change in income is termed as income elasticity of demand. If…

Q: 35. If an increase in income causes the quantity demanded of a good to fall, then the good is: (a) A…

A: Demand is a principle of economics which captures the consumer's desire to buy the product or…

Q: You are choosing between two goods, X and Y, and your marginal utility from each is shown in the…

A: Since we only answer up to 3 sub-parts, we will answer the first 3. Please resubmit the question…

Q: 1) At the start of the new year, Adriana finds out that the price of her economics textbook…

A: Income elasticity shows the responsiveness of change in demand to change in income. It is calculated…

Q: Which of the following combinations best describes the effects.of a consumer income increase on the…

A: For normal goods, income and demand are directly related. An increase in income would lead to an…

Q: 1. What information do we gain by isolating the income and substitution effects from each other when…

A: There are 2 ways to explain the substitution effects  a) Hicksian substitution effect b) Slutsky…

Q: a) A consumer has a utility function given by U = x0.25 y0.75 He has an income of £100, the price of…

A: Utility is maximized at the point where slope of indifference curve given by ratio of marginal…

Q: There are only two brands of tennis balls Tom purchases: "Wilson" and "Penn." The more he purchases…

A: Here,  correct option is (c) Tom is increase his satisfaction by doing nothing. Because,…

Q: 22. If the cross elasticity of demand between bread rolls and cheese is -3,0, this implies that…

A: Cross-elasticity of demand is a term which calculates the reactivity of the amount requested for one…

Q: Indicate whether the statement is True or False, and briefly explain why:

A: Lets analyze the question.