📚 Learning Guide
Substitutes and Complements in Economics
easy

When the price of potatoes increases, the demand for corn, which is a __________, is likely to rise as consumers seek alternatives.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

complement

B

substitute

C

inferior good

D

luxury good

Understanding the Answer

Let's break down why this is correct

Answer

When the price of potatoes goes up, people might decide to buy corn instead because it can be used in similar ways, making corn a substitute for potatoes. For example, if a family usually makes mashed potatoes but finds them too expensive, they might choose to make corn on the cob instead. This change happens because consumers want to save money while still enjoying a tasty side dish. So, as the price of one good rises, the demand for its substitute often increases. This relationship shows how the choices people make can be influenced by price changes in related products.

Detailed Explanation

When potatoes cost more, people look for other foods. Other options are incorrect because Some might think complements go together, like peanut butter and jelly; An inferior good is something people buy more of when they have less money.

Key Concepts

Substitutes and Complements
Consumer Behavior
Market Dynamics
Topic

Substitutes and Complements in Economics

Difficulty

easy level question

Cognitive Level

understand

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