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Introduction to Economics 1
Introduction to Economics 1 Deneme Sınavı
Introduction to Economics 1 Deneme Sınavı Sorusu #730899
Introduction to Economics 1 Deneme Sınavı Sorusu #730899
......... serve as replacements for one another. When the price of one rises, the deman for the other increases. Which of the following completes the sentence above?
Normal goods |
Inferior goods |
Substitute goods |
Preferred goods |
Complementary goods |
Yanıt Açıklaması:
If two products are substitutes for each other, a change in the price of one product will change the demand for the other product in the opposite direction. For example, if the price of chicken goes down, the demand for beef will shift down to the left. As chicken is a substitute product for beef, a fall in the price of chicken will increase the consumption of chicken and the quantity demanded in the beef market will fall for all possible levels of price. In other words, substitute goods serve as replacements for one another. When the price of one rises, the demand for the other increases.
The correct answer is C.
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