Asked by
Lexus Morris-Carballo
on Dec 11, 2024Verified
A 10 percent increase in the price of sugar reduces sugar consumption by about 5 percent. The increase causes households to
A) spend more on sugar.
B) spend less on sugar.
C) spend the same on sugar.
D) consume more goods like coffee and tea that are complements of sugar.
Complements
Products that are usually consumed jointly (for example, bread and butter, hot dogs and hot dog buns). A decrease in the price of one will cause an increase in demand for the other.
Consumption
The use of goods and services by households or individuals, typically relating to how these actions affect economic demand.
- Comprehend how alterations in prices affect the demand for products.
Verified Answer
JP
Learning Objectives
- Comprehend how alterations in prices affect the demand for products.