Two goods are considered substitutes only if
a. a decrease in the demand for one leads to a decrease in the supply of the other
b. an increase in the demand for one leads to a decrease in the supply of the other
c. an increase in the price of one leads to an increase in the demand for the other
d. a decrease in the price of one leads to an increase in the demand for the other
e. a decrease in the supply of one leads producers to switch to production of the other
C
You might also like to view...
Generally, economies of scope are present when
A) economies of scale are present in the production of two or more goods. B) economies of scale are constant in the joint production of two products. C) joint output is less from a single firm than could be achieved from two different firms each producing a single product (assuming equivalent production inputs in both situations). D) joint output is greater from a single firm producing two goods than could be achieved by two different firms each producing a single product (assuming equivalent production inputs in both situations).
Watching a movie on-demand in one's home is an example of a ____
a. merit good b. club good c. public good d. private good