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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
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.
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
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.
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.
What is the difference between elastic and inelastic?
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.
Define complementary goods and substitutes?
A and B are said to be complementary goods if the price of A decreases (increases) will result an increase (decrease) of the demand of B. In addition, they are goods usually consumed together.
What is a close substitute?
Close substitutes are those goods that could closely take the place of a particular good.
What is meant by heterogeneous goods in economics?
Goods or services that pertains to the same function. They are close substitutes with distinguishable features i.e. different packaging, shape size etc, unlike Homogenous goods which are undifferenciated
