ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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not change unless the price of grapefruit juice also changes
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decrease because the two goods are complements
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decrease because the two goods are complements
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decrease because the two goods are substitutes
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Detailed explanation-1: -decrease because the two goods are complements e not change unless the price of grapefruit juice also changes 6.
Detailed explanation-2: -The correct answer is, c. a decrease in the quantity demanded of grapefruit. The change in price changes the quantity demanded (QD) or quantity supplied (QS) of a product.
Detailed explanation-3: -Considering that the two are substitute goods, you would purchase the cheaper one. That is why the demand for apple increases.
Detailed explanation-4: -The demand for orange juice is more elastic than the demand for a specific brand of orange juice. This can be explained by the concept of brand loyalty. Once a certain group of consumers is loyal to a specific product, then the quantity they consume will not be sensitive to changes in price.
Detailed explanation-5: -When two goods are substitutes in consumption, then a rise in the price of one good will increase Demand (shift right) for the other good and the reverse for a decrease in the price of the first good. This happens because the consumer(s) can substitute from the consumption of one good to the consumption of the other.