If the price of crackers goes up when the price of cheese goes down, crackers and cheese are
a)complements.
b)substitutes.
c)both substitutes and complements.
d)inferior goods.
Correct answer is option 'D'. Can you explain this answer?

Question

If the price of crackers goes up when the price of cheese goes down, crackers and cheese are

a)complements.

b)substitutes.

c)both substitutes and complements.

d)inferior goods.

Correct answer is option 'D'. Can you explain this answer?

Answer

A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B. For example, the demand for one good (printers) generates demand for the other (ink cartridges).

Answer

Not satisfied with answer because of cheese is not a inferior goods and we cannot compare cheese with crackers

Answer

Crackers and cheese are inferior goods, which means that as consumers' income increases, they tend to consume less of these goods.

Explanation:

Inferior goods are those goods for which demand decreases as consumer income increases. This is because as consumers' income increases, they tend to purchase more expensive and high-quality goods, which are considered superior goods. However, when consumers' income decreases, they tend to purchase cheaper and low-quality goods, which are considered inferior goods.

In the case of crackers and cheese, they are considered inferior goods because as consumers' income increases, they tend to purchase more expensive and high-quality foods such as meat, fruits, and vegetables, instead of crackers and cheese.

When the price of cheese goes down, consumers tend to purchase more cheese, which means that they will also purchase less of other food products such as crackers. This is because cheese and crackers are often consumed together, and when the price of cheese goes down, consumers tend to substitute crackers with cheese.

However, when the price of crackers goes up, consumers tend to purchase less of crackers because they are considered inferior goods. This means that even though consumers may substitute crackers with cheese when the price of cheese goes down, they tend to reduce their overall consumption of crackers as their income increases or the price of crackers goes up.

Conclusion:

Therefore, crackers and cheese are considered inferior goods, and when the price of cheese goes down, consumers tend to substitute crackers with cheese. However, when the price of crackers goes up, consumers tend to consume less of crackers because they are considered inferior goods.

Answer

How could crackers and cheese be complement to each other??

Answer

How the answers is option (d )i dont anderstand

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