Sugar and honey are viewed as substitutes for each other in many cooking applications. If the price of sugar rises, we would expect the:
a. demand for honey to increase.
b. demand for honey to decrease.
c. quantity demanded of honey to decrease.
d. price of honey to decrease.
e. quantity demanded of honey to increase.
QUESTION 2If butter is a substitute for margarine, then an increase in the price of butter would be most likely to cause:
a. a rightward shift of demand for margarine.
b. a leftward shift of demand for margarine.
c. the quantity demanded for margarine to increase.
d. the quantity demanded for margarine to decline.
e. a decline in the price of margarine.
QUESTION 3Two goods are considered substitutes only if a(n):
a. decrease in the demand for one leads to a decrease in the supply of the other.
b. increase in the demand for one leads to a decrease in the supply of the other.
c. increase in the price of one leads to an increase in the demand for the other.
d. decrease in the price of one leads to an increase in the demand for the other.
e. decrease in the supply of one leads producers to switch to production of the other.
QUESTION 4Which of the following pairs is the best example of substitutes?
a. Coffee and cream. b. Honey and biscuits.
c. Tortillas and salsa. d. Hiking boots and athletic shoes.
QUESTION 5Coffee and tea are:
a. complements.
b. substitutes.
c. inferior goods.
d. unrelated goods.
e. nonmarket goods.
QUESTION 6Substitute goods are goods that are:
a. jointly consumed.
b. competing for consumer spending.
c. used late in the game.
d. inferior.
e. normal.
QUESTION 7Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?
a. A movement down along the Pepsi demand curve.
b. A rightward shift in the Pepsi demand curve.
c. A movement up along the Pepsi demand curve.
d. A leftward shift in the Pepsi demand curve.
Quick Reply
