ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
One of the reasons consumers choose substitutes is that
|
|
no one can tell the difference.
|
|
|
they are relatively cheaper.
|
|
|
they are made in Japan.
|
|
|
they are the same price and there are more of them.
|
Explanation:
Detailed explanation-1: -The substitution effect is the decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises.
Detailed explanation-2: -The substitution effect states that when the price of a good decreases, consumers will substitute away from goods that are relatively more expensive to the cheaper good.
Detailed explanation-3: -Key Takeaways In economics, products are often substitutes if the demand for one product increases when the price of the other goes up. Substitutes provide choices and alternatives for consumers while creating competition and lower prices in the marketplace.
Detailed explanation-4: -the demand for substitute goods will increase.
There is 1 question to complete.