Good a and Good B Are Substitutes in Production

question 73

Multiple Choice

Good A and good B are substitutes in production. The demand for good A increases so that the price of good A rises. The increase in the price of good A shifts the

• A)supply curve of good B leftward.
• B)demand curve for good B rightward.
• C)supply curve of good B rightward.
• D)demand curve for good B leftward.

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Definitions:

Customer Needs

The recognized desires or requirements of consumers that prompt them to purchase a product or service to solve a problem or fulfill a desire.

Skimming Pricing

A marketing strategy involving setting high prices for a new product during its initial phase to maximize profitability from customers willing to pay more.

Penetration Pricing

A marketing strategy used by companies to attract customers to a new product or service by offering a lower price initially.

Prestige Pricing

A pricing strategy where prices are set higher than normal because the product or service is perceived to have a higher value or status symbol.