Oatmeal is a normal good and cold cereal is a substitute for oatmeal. Raisins are a complement for oatmeal. Which of the following increases the demand for oatmeal?

Question

Quizplus · Accepted Answer

An increase in the price of cold cereal will make consumers more likely to buy oatmeal as a substitute, increasing the demand for oatmeal. A decrease in income would likely decrease the demand for oatmeal as it is a normal good. A decrease in population would decrease the demand for oatmeal as there are fewer consumers. An increase in the price of raisins would not directly affect the demand for oatmeal, as raisins are a complement and not a substitute.

Oatmeal Is a Normal Good and Cold Cereal Is a Substitute