Oatmeal is a normal good and cold cereal is a substitute for oatmeal.Raisins are a complement of oatmeal.Which of the following increases the demand for oatmeal?
A)an increase in the price of raisins
B)a decrease in income
C)a decrease in population
D)an increase in the price of cold cereal
E)an increase in the supply of oatmeal

Question

Quizplus · Accepted Answer

An increase in the price of cold cereal, which is a substitute for oatmeal, would make people less likely to buy cold cereal and more likely to buy oatmeal instead, thus increasing demand for oatmeal. The other options would not have this effect on the demand for oatmeal.

Oatmeal Is a Normal Good and Cold Cereal Is a Substitute