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Two goods are substitutes if a decrease in the price of one good?
Price will increase
The price of good risescausing the demand for another good to fallthe two goods are therefore substitutes. do you agree?
WHAT
Can we use the concept of price elasticity to identify a brand's competitors?
Yes, you can. When the cross-price elasticity between two goods is positive, they are more likely substitutes in consumption; when it is negative, they are more likely complements. A cross-price elasticity of 0 implies no correlation.
Goods that can be used in place of each other are called?
Substitutes
The price of good rises causing the demand for another good to fall.the two goods are therefore substitutes. do you agree?
Yes
Two goods are substitutes if a decrease in the price of one good?
Price will increase
The price of good risescausing the demand for another good to fallthe two goods are therefore substitutes. do you agree?
WHAT
what is the indifference curve for two goods with imperfect substitutes?
the indifference curve has its usual negatively sloping shape
Can we use the concept of price elasticity to identify a brand's competitors?
Yes, you can. When the cross-price elasticity between two goods is positive, they are more likely substitutes in consumption; when it is negative, they are more likely complements. A cross-price elasticity of 0 implies no correlation.
Goods that can be used in place of each other are called?
Substitutes
The price of good rises causing the demand for another good to fall.the two goods are therefore substitutes. do you agree?
Yes
How price of related goods affect demand?
Price of related goods fall into two categories: substitutes and complements. Complements are when a price decrease in one good increases the demand of another good. Substitutes are when a price decrease in one good decreases the demand for another good.
Difference between public goods and private goods?
Public goods are non-excludable and non-rival in consumption whereas Private goods are excludable and rival in consumption.
What is the difference between inelastic and elastic goods?
Elastic goods usually have many substitutes, so changes in price will decrease demand. Inelastic goods, on the other hand, have very few substitutes, so demand isn't generally affected by price change.
Effects of substitute goods?
If goods are perfect substitutes, a consumer will have no preference as to which one he or she will prefer and will make their decision on price alone. It is likely however that perfect substitutes would also all be sold for the same price.
Which person studies the production distribution and consumption of goods and services?
An Economist studies the production distribution and consumption of goods and services
Which person studies the production .distribution and consumption of goods and services?
An Economist studies the production distribution and consumption of goods and services
