suppose that when the price of hamburgers decreases, the landry family decreases their purchases of chicken…
suppose that when the price of hamburgers decreases, the landry family decreases their purchases of chicken nuggets. to the landry family\n\na. hamburgers and chicken nuggets are normal goods.\nb. hamburgers and chicken nuggets are inferior goods.\nc. hamburgers and chicken nuggets are substitutes.\nd. hamburgers and chicken nuggets are complements.
Answer
Brief Explanations:
Complementary goods are those where a decrease in the price of one good leads to an increase in the quantity demanded of the other good. Substitute goods are those where a decrease in the price of one good leads to a decrease in the quantity demanded of the other good. Here, when the price of hamburgers decreases, the Landry family decreases their purchases of chicken - nuggets, which is characteristic of substitute goods. Normal and inferior goods are related to income - quantity demanded relationships, not price - quantity demanded relationships between two goods in this context.
Answer:
C. hamburgers and chicken nuggets are substitutes