Asked by
Julia Belous
on Dec 11, 2024
Verified
Two goods are considered substitutes only if
A) a decrease in the demand for one leads to a decrease in the supply of the other
B) an increase in the demand for one leads to a decrease in the supply of the other
C) an increase in the price of one leads to an increase in the demand for the other
D) a decrease in the price of one leads to an increase in the demand for the other
E) a decrease in the supply of one leads producers to switch to production of the other
Substitutes
Products or services that can be used in place of one another, where an increase in the price of one leads to an increased demand for the other.
- Examine how complementary and substitute goods influence consumer demand.
Verified Answer
MA
Learning Objectives
- Examine how complementary and substitute goods influence consumer demand.