Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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