Which of the Following Pairs of Goods Would Be Most

question 181

Multiple Choice

Which of the following pairs of goods would be most likely to be substitutes?

• A) pasta and pasta sauce
• B) olive oil and vegetable oil
• C) chips and salsa
• D) tires and automobiles
• E) all of the above

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Definitions:

Purely Competitive Market

A market characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to price determination by market forces.

Agricultural Commodity

Basic goods used in commerce that are interchangeable with other goods of the same type, such as grains, beef, or milk, primarily produced through farming activities.

Quantity Demanded

The complete volume of a good or service that consumers are prepared and able to buy at a certain price point.

Quantity Supplied

The quantity of a product or service that sellers are prepared to offer for sale at a set price during a particular timeframe.