Which of the following is true if the price of coffee increases?

A. The demand for tea, a substitute good, will decrease.
B. The demand for coffee will increase.
C. The demand for tea, a substitute good, will increase.
D. Both the demand for coffee and tea will increase.


Answer: C

Economics

You might also like to view...

Describe the U.S. Social Security system and explain how it is funded.

What will be an ideal response?

Economics

The most notable surfaced road of the 19th century, ___________, was built using federal government funds

a. the Cumberland Road b. the Wilderness Road c. the Natchez Trail d. the Forbes Road

Economics

Certain actions by oligopolistic firms can lead to collusion even when they formally do not agree to cooperate

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is not part of the investment component of GDP?

a. residential construction b. plant, equipment, and software c. net imports d. business structures

Economics