Question

If the price rises on olive oil and the quantity demanded of garlic drops, then these...

If the price rises on olive oil and the quantity demanded of garlic drops, then these two items are considered to be:

there is not enough information to make a determination.
complements
normal goods
substitutes

Homework Answers

Answer #1

Answer
Option 1
there is not enough information to make a determination


here, the price of one good and quantity demanded of other good is compared.


The relationship is negative but, the increase in the price of one decrease demand for other means complement goods.
Even though the decrease in demand decreases quantity demanded but it is not direct relationship with quantity as the quantity demanded only change with the change in price and not because of the change in the price of complement goods.
In lemon language there is no relationship between the price of a good and the quantity of other good, there is a possible relationship between the price of one good and demand of other good.
A relationship is positive means substitute goods, and a relationship is negative means complement goods.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that when the price of good A rises from $18 to $20, the quantity demanded...
Suppose that when the price of good A rises from $18 to $20, the quantity demanded of good B falls from 30 units to 20 units. Using the midpoint method, the cross-price elasticity of demand is Select one: a. -0.26, where goods A and B are complements. b. -0.26, where goods A and B are substitutes. c. -3.8, where goods A and B are complements. d. -3.8, where goods A and B are substitutes.
A measure of the rate of percentage change of quantity demanded with respect to price, holding...
A measure of the rate of percentage change of quantity demanded with respect to price, holding all other determinants of demand constant is a. Income elasticity of demand b. Own price elasticity of demand c. Price elasticity of market equilibrium d. Cross price elasticity of demand The value of the income elasticity of demand coefficient for Good X is  given as 0.1. This means that a. as income increases by 10 percent, quantity demanded rises by 1 percent. b. as income...
The quantity of aggregate goods and services demanded rises when the a. price level rises, because...
The quantity of aggregate goods and services demanded rises when the a. price level rises, because the interest rate falls. b. price level falls, because the interest rate falls. c. price level falls, because the interest rate rises. d. price level rises, because the interest rate rises.
When the price is $2, quantity demanded is 10. When the price rises to $8, quantity...
When the price is $2, quantity demanded is 10. When the price rises to $8, quantity demanded falls to 2. What is the value of the elasticity of demand? Is it elastic or inelastic?
1.If price rises by 20% and quantity demanded of rice falls by 100 pounds, the elasticity...
1.If price rises by 20% and quantity demanded of rice falls by 100 pounds, the elasticity of demand is : (1 point) a. greater than 1 b. equal to -5 c. equal to -20 d. cannot be determined without additional information. 2.If quantity supplied responds only slightly to a change in price, then: (1 point) a. Supply is elastic b. An increase in price will shift the supply curve to a large extent c. Supply is inelastic d. Supply is...
When the price of a cruise rises from $19,500 to $20,500​, the quantity demanded decreases from...
When the price of a cruise rises from $19,500 to $20,500​, the quantity demanded decreases from 2,100 to 1,900 travelers. Use this information to calculate the price elasticity of demand. The percentage change in the price of a cruise is——? The percentage change in the quantity of cruises demanded is ——?percent. ​>>> Report your answer as a positive number. The price elasticity of demand for cruises is——?
Suppose that when the price of water rises by 30 percent, the quantity demanded falls by...
Suppose that when the price of water rises by 30 percent, the quantity demanded falls by 10 percent. The price elasticity of demand for water is ____________, making water an _______________ good (in this example).
1)The price elasticity of demand for candles is __________ because as the price of candles rises...
1)The price elasticity of demand for candles is __________ because as the price of candles rises by 21%, the quantity demanded of candles falls by 14%. Group of answer choices a)inelastic b)none of the other three answers c)unitary elastic d)elastic 2) If the % change in the quantity demanded of bicycles is greater than the % change in the price of bicycles, then bicycles are __________ . Group of answer choices a)Inelastic b)Unitary elastic c)Elastic d)Infinitely elastic 4)All of the...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in the following scenarios. a. Consider the market for coffee. Suppose the price rises from $4 to $6 and quantity demanded falls from 120 to 80. What is price elasticity of demand? Is coffee elastic or inelastic? b. John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buys each week falls from 2 pounds to 1 pound. What is his income...
If, as the price of good Y rises from $5.00 to $5.75, the quantity demanded of...
If, as the price of good Y rises from $5.00 to $5.75, the quantity demanded of good Y falls from 54 units to 48 units, price elasticity of demand for good Y in this price range is Question 7 options: a) 0.84. b) 0.37. c) 1.05. d) 4.77. e) 1.19.