Which of the Following Situations Is an Example of Substitution

question 101

Multiple Choice

Which of the following situations is an example of substitution?

• A) At the same price, consumers spend more money on watermelons in the summer and substitute apples in the fall.
• B) Consumers buy more T-bone steaks when the price of filet mignon increases.
• C) A grocery store chain decides to take a weak-selling good off the shelves.
• D) Consumers unsubscribe from HBO's streaming service after "Game of Thrones" ends.

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Definitions:

Pure Competition

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a homogeneous product, leading to price taking behavior.

Competitive Firm

A business that competes in a market where it has some influence on the prices of its products or services but faces competition from other firms.

Total Economic

A term likely intending to refer to 'total economic value,' which encompasses all direct and indirect values of a resource or entity.

ATC Curves

Graphs that illustrate the average total cost of production at different levels of output.