Asked by Keshawn Johnson on Apr 26, 2024
Verified
If coffee and tea are substitutes, then an increase in the price of coffee will result in an increase in the demand for tea.
Substitutes
Goods or services that can be used in place of each other, where the increase in the price of one leads to an increased demand for the other.
Coffee
A beverage made by grinding and brewing the seeds of the coffee plant, commonly consumed for its stimulating effects.
Tea
An aromatic beverage commonly prepared by pouring hot or boiling water over cured or fresh leaves of the Camellia sinensis plant.
- Acquire knowledge about the theory of demand and the determinants that impact it.
Verified Answer
TC
Tanner CereghinoApr 26, 2024
Final Answer :
True
Explanation :
When two goods are substitutes, an increase in the price of one (coffee) will lead to an increase in demand for the other (tea), as consumers switch to the more affordable option.
Learning Objectives
- Acquire knowledge about the theory of demand and the determinants that impact it.