Suppose that the demand for emu leather falls after a decrease in price of snake skin. This would mean that emu leather is:

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BlackTom AI · Accepted Answer

To analyze the scenario, start by understanding cross-price effects and substitution.
Option a: a substitute good. If the price of snake skin falls, consumers are likely to switch from emu leather to the cheaper snake skin, causing the quantity demanded of emu leather to fall. This indicates that emu leather and snake skin are substitutes, so option (a) is consistent with the observed effect.
Option b: an inferior good. Inferior goods have demand that falls as income rises or, more generally, do not rise with income. The given situation relates to a cross-price effect (price of another good) rather than income, so labeling emu leather as inferior based solely on this scenario would be incorrect.
Option c: a complementary good. Complementary goods are typically demanded together; a decrease in the price of one would usually increase the demand for the other if they are complements. Here, a decrease in snake skin price reduces demand for emu leather, which is the opposite of what happens with complements, so this is incorrect.
Option d: a normal good. Normal goods see higher demand with higher income; again, the scenario centers on cross-price effects between goods rather than income, so this option does not capture the observed relationship.
In sum, the cross-price effect described—demand for emu leather falling when the price of snake skin falls—aligns with emu leather being a substitute for snake skin, making option (a) the correct classification.

Suppose that the demand for emu leather falls after a decrease in price of snake skin. This would mean that emu leather is:

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