Question

If shoes and socks are complements and both are normal goods, show graphically what would happen to the consumption of shoes and socks if

a. the price of shoes decreased.
b. consumer incomes increased.

Answer 1

Answer :
In both the cases the purchase of shoes and socks were go up.
In case a : price of shoes decreasing causes the buying capacity more, socks being a complement product its purchase also go up. In economical point of view , the product of price is lowered, the purchase of product is go up.
In case b : Consumers income increased, purchasing a shoe is not a great task in their budget , hence the shoe purchase and its complement purchase of socks are also go up.