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If the Price of Peaches,a Substitute for Plums,increases the Demand

question 23

True/False

If the price of peaches,a substitute for plums,increases the demand for plums will decrease.


Definitions:

Elastic

Describes a situation in which the demand for a product or service significantly changes in response to a change in its price.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and fuel.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

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