Which of the following would most likely lead to an increase in the quantity demanded of raspberries? Group of answer choices A decrease in the price of blueberries, a substitute for raspberries. An increase in the price of blueberries, a complement for raspberries. A decrease in income if raspberries are a normal good. None of the above.
Question
Which of the following would most likely lead to an increase in the quantity demanded of raspberries? Group of answer choices
A decrease in the price of blueberries, a substitute for raspberries.
An increase in the price of blueberries, a complement for raspberries.
A decrease in income if raspberries are a normal good.
None of the above.
Solution
The correct answer is "None of the above."
Here's why:
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A decrease in the price of blueberries, a substitute for raspberries, would likely lead to a decrease in the quantity demanded of raspberries. This is because consumers would switch to the cheaper substitute (blueberries).
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An increase in the price of blueberries, if they are a complement to raspberries, would also likely lead to a decrease in the quantity demanded of raspberries. This is because an increase in the price of a complement good reduces the demand for both goods.
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A decrease in income would lead to a decrease in the quantity demanded of raspberries if raspberries are a normal good. Normal goods are those for which demand increases as income increases. So, if income decreases, the demand for normal goods also decreases.
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