Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Demand for corn will increase due to its status as a substitute.
B
Demand for corn will decrease as consumers prefer potatoes.
C
Demand for corn will remain unchanged regardless of potato prices.
D
Demand for corn will increase only if corn prices decrease.
Understanding the Answer
Let's break down why this is correct
Answer
When the price of potatoes goes up a lot, people might look for other options to buy instead of potatoes. Corn is often considered a substitute for potatoes, which means that if potatoes become too expensive, people may choose to buy corn instead. As more people buy corn, the demand for it will likely increase because they want to save money while still having a similar food option. For example, if a bag of potatoes costs $5 now and suddenly jumps to $10, a family might decide to buy corn instead for their meals. This change in buying habits shows how prices can affect demand for different foods that people see as alternatives.
Detailed Explanation
When potatoes cost more, people might buy corn instead. Other options are incorrect because This answer suggests people will still want potatoes even if they cost more; This option thinks that corn demand won't change at all.
Key Concepts
Substitute Goods
Price Elasticity of Demand
Consumer Behavior
Topic
Substitutes and Complements in Economics
Difficulty
medium level question
Cognitive Level
understand
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