If Coffee Is a Substitute for Tea,and the Price of Coffee

question 167

Multiple Choice

If coffee is a substitute for tea,and the price of coffee rises,what will happen?

• A)Demand for tea will decrease.
• B)Demand for tea will increase.
• C)The quantity demanded of coffee will rise.
• D)The quantity demanded of tea will decrease.

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Definitions:

Annually Balanced Budget

A budgeting approach where the government's projected revenues and expenditures are equal within a one-year period.

Countercyclical

Economic policies or measures intended to mitigate the effects of recessions by stimulating economic activity during downturns.

Destabilize

To cause a system, government, or structure to become unstable, potentially leading to disorder, chaos, or downfall.

Unemployment Rate

A measure of those in the labor force who are without employment and are searching for a job.