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.

---

Definitions:

Fashion Apparel

Clothing and accessories designed and manufactured according to current trends and styles.

Varying Price

A pricing strategy where the price of a product or service changes over time or depending on the situation, often in response to market demand.

Market Segments

Divisions within a broader market, categorized by distinct characteristics such as demographics, needs, or preferences.

Product Attributes

Characteristics or features that define a product, including quality, size, design, and functionality.