Asked by
Lucero Crusoe
on Oct 14, 2024
Verified
If two goods are substitutes, then an increase in the price of one of them will increase the demand for the other.
Substitutes
Substitutes are goods or services that can be used in place of each other, where the consumption of one increases, the demand for the other decreases.
Increase Demand
A rise in the quantity of a product or service that consumers are willing and able to purchase at a given price, usually due to factors like income growth, price decrease of the good, or changes in tastes and preferences.
- Identify the properties of various types of goods and their demand curves (e.g., Giffen goods, substitutes).
Verified Answer
RS
Learning Objectives
- Identify the properties of various types of goods and their demand curves (e.g., Giffen goods, substitutes).