If the Price of Peaches, a Substitute for Plums, Decreases

question 28

True/False

If the price of peaches, a substitute for plums, decreases the demand for plums will increase.

---

Definitions:

Foreign Market

An external market outside the domestic borders where goods, services, and securities are traded or sold.

Cost of Production

The total expense incurred in manufacturing goods or providing services, including raw materials, labor, and overhead costs.

Trade Barriers

Measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.

Economic Perspective

The viewpoint from which economic analysts assess and interpret the workings of economic systems and the behavior of economic agents.