Answer to Question #77607 in Microeconomics for Anesia

Question

Illustrate and explain what will happen to the quantity demanded for bread if the price of butter increases and the income of people who buy bread increases. (hint: one graph with 2 curves)

Answer 1

If the price of butter increases and the income of people who buy bread increases, then demand for bread will decrease as butter and bread are complements and also it will increase as it is a good of first need, so
the quantity demanded for bread may increase or decrease.