We Observe That People Buy Less Steak and More Potatoes

question 221

Multiple Choice

We observe that people buy less steak and more potatoes when the price of steak relative to potatoes increases. This indicates that steak and potatoes are

• A) substitutes.
• B) complements.
• C) inferior goods.
• D) unrelated goods.

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Definitions:

Demand

The total quantity of a product or service that consumers are willing and able to purchase at various price levels at a given point in time.

Lipase

An enzyme that catalyzes the breakdown of fats into fatty acids and glycerol.

Gastrointestinal Tract

The pathway starting from the mouth to the anus, responsible for digestion and absorption of nutrients.

Lugol's Iodine

A solution used as a disinfectant and antiseptic, also for staining cells in cytological examinations.