March 26, 2015

Homework Help: 3 Questions

Posted by Trisha on Sunday, June 19, 2005 at 7:30pm.

I have three True/False questions. If they are false, please explain why. It is due Monday.

1. A shift in supply causes the price of a good to rise. The shift must have been an increase in supply.
I think this is True.

2. The price of good X rises. This causes an increase in the price of good Y. Goods A and B are substitutes.
I think this is False, because there is not enough information about Good A and B.

3. Two inferior goods can be complements to each other.
I think this is true.

1. If there is a surplus (increase in supply) the price drops.

2. I think you are correct

1) answered by Lance

2) If X and Y are substitutes, then when the price of X rises, people by less X and more Y (i.e., demand for Y rises). Price of Y goes up. So, I believe #2 is true.

3) Inferior goods are things you buy less of as income rises. Complements are two goods typically purchased together. Two inferior goods can be complements. So, I believe 3 is true.

The thing throwing me off on #3 is that our instructor had mentioned both goods could not be inferior?
Thanks to both of you! :-)

Answer this Question

First Name:
School Subject:

Related Questions

economics - Which of the following is a FALSE statement? A. Changes in the price...
science questions true or false! - 5. Air is a good conductor of heat. (1 point...
finance - Entrepreneur Edward is planning to open a business selling ice cream. ...
microeconomics - If the technology for producign a good improves and at the same...
MANAGERIAL FINANCE. Please help - Hi, I have some questions about managerial ...
economics - Can you please exlain to me if I'm wrong not just correct me. ps. ...
7th grade health Ms. Sue please thanks - True/False Indicate whether the ...
grammar - Can you plese tell if the follong questions are true or false (...
Marketing Question - Technological changes do not directly affect what, how, ...
economics - some study guide questions i am stumped on 1 uncertainty about the ...