sunscreen and beach towels are complementary goods if the price of sunscreen increases ceteris paribus
responses
the quantiti ydemand of beach towels will decrease or every price
the income of consumers will increase
the quanitity demanded of black towel will increase with every price
the income of consumers will decrease
The quantity demanded of beach towels will decrease for every price. Since sunscreen and beach towels are complementary goods, an increase in the price of sunscreen will discourage consumers from purchasing sunscreen. This, in turn, will lead to a decrease in the demand for beach towels as people may be less inclined to go to the beach or spend time outdoors without proper sun protection.
The income of consumers will not necessarily increase or decrease in response to the increase in the price of sunscreen. The change in income would depend on other factors that are not specified in the given scenario.
The quantity demanded of black towels (it seems like there was a typo in the question, assuming "black towel" refers to beach towels) may or may not increase with every price. The change in demand for black towels would depend on factors like consumer preferences, availability of other colors, and competing products. The scenario does not provide information on these factors, so it is not possible to determine how the demand for black towels would be affected.
Similarly, the income of consumers will not necessarily decrease due to the increase in sunscreen prices unless there are other factors specified in the scenario that would cause a decrease in consumer income.
pick one answer
The quantity demanded of beach towels will decrease for every price.
The responses to the statement "sunscreen and beach towels are complementary goods if the price of sunscreen increases, ceteris paribus" are as follows:
1. The quantity demanded of beach towels will decrease at every price: When the price of sunscreen increases, people may be less likely to purchase sunscreen. This can result in a decrease in the demand for beach towels as well, as people may be less inclined to spend time at the beach or engage in outdoor activities where they would typically use beach towels.
2. The income of consumers will increase: The statement does not provide any information about the income of consumers changing. Therefore, it is not necessary to assume that the income of consumers will increase in this scenario.
3. The quantity demanded of black towels will increase with every price: The statement does not provide any information specific to the color of beach towels. Therefore, it is not possible to infer whether the quantity demanded of black towels specifically will increase or decrease with every price.
4. The income of consumers will decrease: Again, the statement does not provide any information about the income of consumers changing. Therefore, it is not necessary to assume that the income of consumers will decrease in this scenario.
Please note that these responses are based on the information provided and assumptions made in the statement, and may not necessarily apply in all situations.
To understand the impact of a price increase in sunscreen on the demand for beach towels, we need to analyze the concept of complementary goods and the effects of changes in price and income. Complementary goods are products that are typically used together or are consumed together.
1. The quantity demanded of beach towels will decrease for every price: When the price of sunscreen increases, ceteris paribus (assuming no other factors change), consumers may be less likely to purchase sunscreen due to the higher price. As a result, they may also be less motivated to buy beach towels, as their need for sunscreen at the beach or in the sun will decrease. This leads to a decrease in the quantity demanded for beach towels.
2. The income of consumers will increase: The price increase in sunscreen itself does not directly impact the income of consumers. However, if the price increase in sunscreen is due to an increase in raw material costs or other factors, this might lead to an increase in the overall price level in the economy. In such cases, consumers' real income may decrease, as their purchasing power would be reduced. This could potentially impact their ability to buy beach towels and other goods.
3. The quantity demanded of black towels will increase with every price: The question does not provide specific information about black towels or why their demand would increase with every price. It is crucial to note that the demand for beach towels, including black towels, may be influenced by factors other than the price increase of sunscreen. It could be due to shifting consumer preferences, fashion trends, or other external factors. However, without further information, we cannot definitively conclude that the quantity demanded of black towels would increase with every price.
4. The income of consumers will decrease: The income of consumers is unrelated to the price increase of sunscreen. The impact of sunscreen's price on consumer incomes depends on factors such as employment, wages, and overall economic conditions. A price change in sunscreen alone does not directly affect the overall income of consumers.