Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n) (i)normal good. (ii)inferior good. (iii)Giffen good. O (i) only O (i) or (ii) only (iii) only (ii) or (iii) only
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- 7 Asen tries to minimize his cost of using two goods x subscript 1 end subscript and x subscript 2 end subscript. The price of the first good is BGN 12 and the second good BGN 8. His utility function is x subscript 1 superscript 3 divided by 5 end superscript x subscript 2 superscript 2 divided by 5 end superscript and the utility he will get from using both goods, is 32 units. Find the Hicks quantities demanded and what Assen's minimum budget must be to consume these quantities and obtain the above utility. e-412, h2=21, h1=21 e=416, h2=21, h1=21 e=640, h1=32, h2=32 e=422, h2=21, h1=21 e=378, h2=21, h1=21 e-378, h2=20, h1=20 another answer e-378, h2=24, h1=24Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n) (i)normal good. (ii)inferior good. (iii)Giffen good. O (i) only O (i) or (ii) only O (iii) only O (ii) or (iii) onlyTwo goods are complements if a decrease in the price of one good. This will lead to: Select one: O a. reduces the quantity demanded of the other good b. increases the quantity demanded of the other good. C. increases the demand for the other good d. reduces the demand for the other good
- Mary makes the following choices of X1 and X2 when prices and income are as follows: X1 X2 P1 P2 I Week 1 10 20 2 1 40 Week 2 6 14 2 2 40 A. Mary considers both goods to be normal goods B. We cannot say whether Mary thinks the goods are normal or inferior. C. X1 is a normal good and X2 is an inferior good for Mary D. X1 is an inferior good and X2 is a normal for Mary Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider Figure 1. Which of the following statements is correct? Figure 1 Y U2 U;\ Uo Y2 Y1 Yo X, X1 X2 X x and y are both Giffen goods Ob. x is a Giffen good and y is a normal good Oc x is a Giffen good and y is an inferior good Oa x is a normal good and y is a Giffen good C. Oe x and y are both normal goods Of x is a normal good and y is an inferior good a x is an inferior good and y is a Giffen good Oh. x is an inferior good and y is a normal good x and y are both inferior goods Oi.A decrease in the supply of a product most likely would be caused by O An increase in business taxes O A decrease in resource costs for production O A decrease in the price of a complementary good O None of the above
- Que 1. In December, the price of Christmas trees rises and the quantity of trees sold also rises. Is this a violation of the law of demand? Que 2. Giving reason, state the impact of each of following on demand curve of a normal good 'x' if.. ) Price of its complementary good falls. iNews reports claims that consumption of product X has harmful effect on human health. ii) Income of consumer increases. Que 3. Vinod belong to a middle income family who lives in a small city. The price of salt is Rs.10 per Kg. and his family price to Rs.15 per Kg. consumes 5 Kg of salt per annum. Now all the sellers of salt have raised their a) Would the Vinod's purchases of salt to be affected by the price increase? Why or Why not? b) In view of your answer what can you say about the price elasticity of demand for salt? c) Suppose the Vinod's income doubles, how would this affect the quantity of salt consumed by his family?Consider a situation with two goods. Which of the following statements are true, which are false? If a good is a Giffen good, then it is an inferior good. O True O False A good is a Giffen good if the demand for this good decreases O True False when income increases. A good is an inferior good if the demand for this good increases when its price increases. O True FalseUESTION 22 Suppose the price of good X increases and consumers purchase more of good Y. Which of the following statements is necessarily true ab- good Y? Oa. Good Y is a normal good. b. Good Y is an inferior good, but not a Giffen good. c. Good Y is an inferior good and a Giffen good. d. Good Y could be a normal or inferior good. 0 F4 F5 10 MacBook Air F6 F7 A W *
- 10) Figure 1 shows some indifference curves and budget lines for consumer Yusuf. Milk A B Cheese Figure 1 If Yusuf's income increases, his optimal consumption changes from point A to point B. Which of the following statements is true for Yusuf? (a) Cheese and milk are substitutes. (b) Cheese is an inferior good. (c) Milk is an inferior good . (d) Milk is a normal good. (e) None of the above.Suppose that an increase in the price of X goods, leads to a decrease in the demand of good Y This would mean that X and Y are: Select one: O a. substitute goods O b. complementary goods O c. None of the answers are correct O d. normal goods.Suppose potatoes are a Giffen good. Then if the price of potatoes decreases, the quantity of potatoes will decrease O remain the same O ambiguous increase