Review Question 6 Question Help Suppose that a consumer spends her income on the

Question

Review Question 6 Question Help Suppose that a consumer spends her income on the following pairs of goods (i) bagels and cream cheese (N) corn flakes and cheerios (ii) haircuts and fresh fruit (iv) travel by train and travel by plane If the price of one of the goods changes, explain the effect on the quantity demanded of the other good. Are the goods substitutes, complements, or unrelated goods? Considering bagels and croam cheose, if the price of one of the goods increases, thon the quantity demanded of the other good will ybecause they are

Explanation / Answer

As the bagel and the cheese cream are complements, a price rise of one good will decrease the demand for the other.

The answer is "decrease", "Complement".

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