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Answer this question… A. When the price of a good goes up, consumers shift their demand to its substitute. B. Substitute goods have perfect unit elasticity for each other. C. Substitute goods tend to have inelastic demand. D. One of the substitutes is usually elastic, while the other is inelastic.

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What is the difference between substitutes and complements in economics?

In economics, substitutes are products that can be used in place of each other, while complements are products that are used together. Substitutes have a negative relationship in demand, meaning when the price of one goes up, the demand for the other increases. Complements have a positive relationship in demand, meaning when the price of one goes up, the demand for the other decreases.


What is the relationship between the demand curve and the concept of perfect substitutes in a graph of perfect substitutes?

In a graph of perfect substitutes, the demand curve is a straight line because consumers are willing to switch between the two goods at a constant rate. This means that as the price of one good decreases, consumers will demand more of that good and less of the other, resulting in a linear demand curve.


How can one determine the demand function for perfect substitutes?

To determine the demand function for perfect substitutes, one can analyze the prices and quantities of the two substitute goods. The demand function will show how the quantity demanded of one good changes in response to changes in the price of the other good, assuming they are perfect substitutes. This can be done through mathematical modeling and empirical analysis to find the relationship between the prices and quantities of the substitute goods.


How does the concept of cross-price elasticity differentiate between complements and substitutes in the market?

Cross-price elasticity measures how the price of one product affects the demand for another. For complements, a decrease in the price of one product leads to an increase in demand for the other. This results in a negative cross-price elasticity. For substitutes, a decrease in the price of one product leads to a decrease in demand for the other, resulting in a positive cross-price elasticity.


What are the major determinants of labor demand?

(1. Demand for output (2. Productivity of Labor a.Quality of labor b.Technological progress c.Non-labor outputs (3. Price of other resources(Substitutes and complements)

Related Questions

What is the difference between substitutes and complements in economics?

In economics, substitutes are products that can be used in place of each other, while complements are products that are used together. Substitutes have a negative relationship in demand, meaning when the price of one goes up, the demand for the other increases. Complements have a positive relationship in demand, meaning when the price of one goes up, the demand for the other decreases.


What is the relationship between the demand curve and the concept of perfect substitutes in a graph of perfect substitutes?

In a graph of perfect substitutes, the demand curve is a straight line because consumers are willing to switch between the two goods at a constant rate. This means that as the price of one good decreases, consumers will demand more of that good and less of the other, resulting in a linear demand curve.


Friction acts in the opposite direction of?

Friction always acts in the opposite direction, of the other object's motion.


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.


How can one determine the demand function for perfect substitutes?

To determine the demand function for perfect substitutes, one can analyze the prices and quantities of the two substitute goods. The demand function will show how the quantity demanded of one good changes in response to changes in the price of the other good, assuming they are perfect substitutes. This can be done through mathematical modeling and empirical analysis to find the relationship between the prices and quantities of the substitute goods.


Is the direction of rotation of Venus opposite to the direction of all other planets?

The rotational direction of Venus and Uranus is opposite to the direction of the rest of the planets.


Can velocity and acceleration point in opposite direction?

Yes, velocity and acceleration can point in the opposite direction to each other. This is because neither one depends on the other. When velocity and acceleration are opposite each other this results in slowing down, for example when you hit the break on your car.


How does the concept of cross-price elasticity differentiate between complements and substitutes in the market?

Cross-price elasticity measures how the price of one product affects the demand for another. For complements, a decrease in the price of one product leads to an increase in demand for the other. This results in a negative cross-price elasticity. For substitutes, a decrease in the price of one product leads to a decrease in demand for the other, resulting in a positive cross-price elasticity.


What are the major determinants of labor demand?

(1. Demand for output (2. Productivity of Labor a.Quality of labor b.Technological progress c.Non-labor outputs (3. Price of other resources(Substitutes and complements)


What is the meaning of ibayo?

"Ibayo" is a Tagalog word that means "other side" or "opposite side." It can refer to the opposite bank of a river, the other side of a street, or the opposite direction.


Does Venus rotate in a direction opposite to all other planets?

yes it does


Has a moon that revolves in the direction opposite all its other moons?

Neptune does.