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:

Institutional Markets

Markets where transactions occur between institutions such as businesses, governments, and non-profits, rather than between a business and individual consumer.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Consumer Buying Process

The stages a consumer goes through when deciding to purchase a product, typically including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Situational Influences

Factors present in a specific situation that can affect consumers' purchasing behavior, including physical environment, social environment, and time.