Scenario 5-1 Suppose That When the Average College Student's Income Is $10,000

question 24

Multiple Choice

Scenario 5-1
Suppose that when the average college student's income is $10,000 per year,the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80.Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie,the quantity demanded of Sue's Subs increases from 80 to 100.Suppose also that when the average student's income increases to $12,000 per year,the annual quantity demanded of Patty's Pizza increases from 50 to 60.
-Refer to Scenario 5-1.What can you deduce about the type of good Patty's Pizza is and about the relationship between Patty's Pizza and Sue's Subs?

• A)Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes.
• B)Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are complements.
• C)Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are substitutes.
• D)Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are complements.

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Definitions:

Effectiveness Of Advertising

The measure of how well advertising campaigns achieve their intended objectives, such as increasing brand awareness or boosting sales.

Spending Large Amounts

The action of disbursing significant quantities of money or resources, especially in the context of investments, purchases, or consumption.

Better Advertising

Enhanced or improved marketing communications aimed at promoting products, services, or brands more effectively.

Credit And Debit Cards

Payment cards issued by financial institutions where credit cards allow for borrowed transactions and debit cards deduct funds directly from the user's account.