Answer to Question #72172 in Microeconomics for nima alfarra

Question

Hard Times Burt buys only rotgut whiskey and jelly donuts to sustain him. For Burt, rotgut whiskey is
an inferior good that exhibits Giffen’s paradox, although rotgut whiskey and jelly donuts are Hicksian
substitutes in the customary sense. Develop an intuitive explanation to suggest why a rise in the price of
rotgut must cause fewer jelly donuts to be bought. That is, the goods must also be gross complements.

Answer 1

If rotgut whiskey is an inferior good and rotgut whiskey and jelly donuts are Hicksian substitutes, then a rise in the price of rotgut must cause fewer jelly donuts to be bought in case the goods are also gross complements, because only complements may have such connection.