Asked by
desiree santiago
on Oct 26, 2024Verified
If coffee and tea are viewed as substitutes in consumption,then an increase in the price of coffee will increase the demand for tea.
Substitutes
Goods or services that can be used in place of each other, satisfying the same needs or desires, and thus competing in the same market.
Price of Coffee
The amount of money required to purchase a unit or a specific quantity of coffee, which can vary based on factors like quality, origin, and market demand.
Demand for Tea
The quantity of tea that consumers are willing and able to purchase at various prices within a given time period.
- Analyze how shifts in the prices of complements and substitutes affect the demand curve.
Verified Answer
MR
Learning Objectives
- Analyze how shifts in the prices of complements and substitutes affect the demand curve.