ECON 1011 Study Guide - Midterm Guide: George Washington University, Peanut Butter, Complementary Good
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ECON 1011 Full Course Notes
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Answer all of the following questions from the book and those below. Wednesday october 12th: questions from text and readings. Chapter 4. 7 (1st review and practice in chap 4) cp 1,2,3,4: it increases. Because we expect that pizza is a complementary good to watching the super bowl, the demand shifter in this case is the number of buyers in the market (the super bowl attracts viewers who are not normally football fans). But the test to determine whether a good is normal or inferior is an empirical one; a good that is normal for one consumer may be inferior for another. For these goods, we expect that demand will decrease as income increases and rise as income falls. Again, whether this holds for each individual is an empirical question: complements: a, b, e, f, g, j. In each of these cases (e. g. , peanut butter and jelly) the goods are likely to be used in conjunction with each other.
