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RoseWind
22 days ago
13

a. Tara buys only shoes and socks. When the price of shoes goes up, Tara continues buying exactly the same number of socks as be

fore. True or False: Socks could not possibly be an inferior good for Tara.
Business
1 answer:
harina [3.2K]22 days ago
5 0
False. Shoes and socks are considered complementary goods, meaning that when the price of one decreases, the demand for the other increases. If we designate "A" as a complement for "B", an increase in the price of "A" adversely affects the demand for "B". Conversely, lower prices for A boost the demand for B, thus shifting its demand curve outward. When the cost of shoes rises, fewer socks are likely to be purchased, and the opposite is true when shoe prices fall.
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