If Shoes and Socks Are Complements and Both Are Normal

question 167

Essay

If shoes and socks are complements and both are normal goods,show graphically what would happen to the consumption of shoes and socks if:
a.the price of shoes decreased.
b.consumer incomes increased.

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Definitions:

Diamond-water Paradox

The contradiction observed in value theory where essential goods like water have low prices, while non-essential goods like diamonds have high prices.

Essential Goods

Products that are necessary for basic living and well-being, often unchanged by changes in income.

Nonessential Goods

Products and services considered as non-critical for survival or basic living standards.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with cheaper ones.