Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are
A) both luxury goods. B) substitutes in consumption.
C) both inferior goods. D) complements in consumption.
B
You might also like to view...
How can national security possibly be threatened when a nation engages in free trade and specializes on the basis of comparative advantage?
What will be an ideal response?
The substitution effect measures how
a. the quantity demanded of one good is influenced by a change in income, with prices constant b. the quantity demanded of one good is influenced by a change the price of another good c. marginal utility per dollar spent is affected by income changes d. an increase in the price of a good is effectively the same as a reduction in income e. the quantity demanded of one good is influenced by a change in the price of that good, with income constant