Which pair of variables might be positively or negatively related depending on the characteristic of the product?Multiple Choicethe price of a product and the quantity of that product demandedthe price of a product and the demand for a complementary productthe supply of a product and the cost of resources required to make itthe income of consumers and the demand for a product
Question
Which pair of variables might be positively or negatively related depending on the characteristic of the product?Multiple Choicethe price of a product and the quantity of that product demandedthe price of a product and the demand for a complementary productthe supply of a product and the cost of resources required to make itthe income of consumers and the demand for a product
Solution
The pair of variables that might be positively or negatively related depending on the characteristic of the product is "the income of consumers and the demand for a product".
Here's why:
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If the product is a normal good (like a car, house, or high-quality food), then the relationship between the income of consumers and the demand for the product is positive. This means that as consumers' income increases, the demand for the product also increases.
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On the other hand, if the product is an inferior good (like canned food or used clothes), then the relationship between the income of consumers and the demand for the product is negative. This means that as consumers' income increases, the demand for the product decreases because consumers can now afford to buy better, more expensive products.
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