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How can the demand for one good be affected by increase demand for another one?
Wiki User
∙ 7y ago
if goods are used together, increased demandfor one will increase demand for the other
Michelle Littel
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How do substitute goods and complementary goods affect demand for another good?
Substitutes and complements is the fact that a change in price of one of the goods has an impact on the demand for the other good. For substitutes, an increase in the price of one of the goods will increase demand for the substitute good. (It's probably not surprising that an increase in the price of Coke would increase the demand for Pepsi as some consumers switch over from Coke to Pepsi.) It's also the case that a decrease in the price of one of the goods will decrease demand for the substitute good.
If a is an inferior good and consumer income risesthe demand for a will?
Inferior goodA good for which an INCREASE(decrease) in consumer income will lead to a DECREASE(increase) in demand for that good.Normal GoodA good for which an INCREASE(decrease) in consumer income will lead to a INCREASE(decrease) in demand for that good.
How will increase in the price of a substitute good shift the demand curve?
An increase in the price of a substitute good will increase demand for the original good, thus shifting the demand curve to the right.
How may changes in prices affect the demand for a good?
Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
How do substitute goods and complementary goods affect demand for another good?
Substitutes and complements is the fact that a change in price of one of the goods has an impact on the demand for the other good. For substitutes, an increase in the price of one of the goods will increase demand for the substitute good. (It's probably not surprising that an increase in the price of Coke would increase the demand for Pepsi as some consumers switch over from Coke to Pepsi.) It's also the case that a decrease in the price of one of the goods will decrease demand for the substitute good.
If a is an inferior good and consumer income risesthe demand for a will?
Inferior goodA good for which an INCREASE(decrease) in consumer income will lead to a DECREASE(increase) in demand for that good.Normal GoodA good for which an INCREASE(decrease) in consumer income will lead to a INCREASE(decrease) in demand for that good.
Is coke a sub or a comp good?
Your answer depends. A substitute good means a good with increasing demand when the price of another good increases. A complimentary good means a with increasing demand when the price of another good decreases. Examples: Substitute - Two types of coffee (Deer coffee and Starbrand coffee). If the price of Deer coffee increases, then the demand of Starbrand coffee will increase. Complimentary - Hot dogs and hot dog buns. If the price of hot dogs decreases, then the demand of hot dog buns will increase. Compared to Pepsi, Coke is a substitute good. If the price of Coke rose drastically, then more people would buy Pepsi instead (demand for Pepsi would increase).
How will increase in the price of a substitute good shift the demand curve?
An increase in the price of a substitute good will increase demand for the original good, thus shifting the demand curve to the right.
How may changes in prices affect the demand for a good?
Price and demand of a good have inverse relationship. An increase in the prices of a good will lead to fall in the demand of a good and viceversa.
Demand for one good or service that is determined by demand for another good or service is .?
derived demand
Demand for one good or service that is determined by demand for another good or service is?
derived demand
How do you show on a demand curve an increase in the demand for a good?
You can choose to shift the demand curve to the right i.e. expansion of demand.
What is the effect of an increase in consumer income on demand for a good?
They both will increase (or decrease).
What is the difference between increase in demand and an increase in quantity demand?
Increase in demand::It imply rightwaed shift of demand curve.Therefore change in factors other than price.1. increase in taste increase in demand curve2. increase in popoulation increase in demand curve3. increase in income increase demand if normal good4. fall in income increase demand if an inferior good5. increase in price of substitute (pepsi) increase demand for good(coke)6. fall in price of complement (beer) increase demand for good7. if we expect the price of the product to increase in the future , our demand today will increase.Increse in quantity demanded::Movement up the demand curve.Therefore change in price-------- increase in price cause a decrese in quantity demanded,decrese in price cause an increase in quantity demanded .
What effect does income have on demand?
An increase in income tends to shift the demand curve for a good or service:For a normal good, the curve will shift to the right, indicating an increase in the demand at the same price.For an inferior good, the curve will tend to shift to the left, indicating a decrease in demand at the same price.
When will the income elasticity of demand equal zero?
When an increase in income is not associated with a change in the demand of a good.
