Economics 2

An example of a Veblen Good is…

• Potatoes
• Bitcoin
• Tesco Value Beans
• a Rolex watch

An example of a Giffen Good is…

• Potatoes
• Bitcoin
• Tesco Value Beans
• a Rolex watch

An example of an inferior good is…

• Potatoes
• Bitcoin
• Tesco Value Beans
• a Rolex watch

An example of a speculative good is…

• Potatoes
• Bitcoin
• Tesco Value Beans
• a Rolex watch

Goods which are complements could also be said to be in…

• Joint Demand
• Competitive Demand
• Joint Supply
• Competitive Supply

Goods which are substitutes could also be said to be in…

• Joint Demand
• Competitive Demand
• Joint Supply
• Competitive Supply

Which of these would cause Demand to increase

• Reduction in price of a substitute
• Increase in price of a complement
• Increase in income tax
• Celebrity Endorsement

Which of these would cause Demand to decrease

• Increase in price of a substitute
• Increase in price of a complement
• Celebrity Endorsement
• Reduction in Income Tax

If a price rise in Good X causes an increase in Demand of Good Y, then Good X and Y could be said to be…

• Substitutes
• Veblen Goods
• Economic Goods
• Complements

If a price rise in Good X causes a decrease in Demand of Good Y, then Good X and Y could be said to be…

• Substitutes
• Giffen Goods
• Free Goods
• Complements