If Vodka and Whiskey Are Substitutes,which of the Following Can

question 138

Multiple Choice

If vodka and whiskey are substitutes,which of the following can we conclude?

• A)A ban on vodka imports would increase the price of whiskey.
• B)The demand for vodka would increase if the price of whiskey fell.
• C)The demand for whiskey would increase if the price of vodka fell.
• D)An increase in the tariff imposed on vodka imports would reduce the price of whiskey.

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Definitions:

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A beverage made from lemon juice, water, and sweeteners, often homemade and sold during warm weather for refreshment.

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The limitations on the household's or entity's ability to purchase goods and services, based on their income and prices.

Good X

A placeholder term often used in economics to represent a generic good or product in theoretical models.