an icrease in the price of a product will reduce the amount of it purchased because:
a. supply curves are upsloping.
b. the higher price means that real incomes have risen.
c. consumers will substitute other products for the one whose price has risen.
d. consumers substitute relatively high-priced for relatively low-priced products.
2006-10-24 06:49:10 · 3 answers · asked by Steven B 1 in Education & Reference ➔ Higher Education (University +)
C - try to think of it in common sense... if you typically buy Crest toothpaste for like, $3.50, and they raise it to $4.00.... you will most probably switch to, say, Colgate or Aquafresh, which are like $3.00...or even the Store Brand! :)
2006-10-24 06:57:34 · answer #1 · answered by sasmallworld 6 · 0⤊ 0⤋
c. consumers will substitute other products for the one whose price has risen.
2006-10-24 06:52:39 · answer #2 · answered by Paul Anka 1 · 0⤊ 0⤋
d.
2006-10-24 06:52:17 · answer #3 · answered by ljk 2 · 0⤊ 0⤋