What Is True of Substitute Products

question 115

Multiple Choice

What is true of substitute products?

• A)When the price of one increases,the quantity purchased of the other decreases.
• B)When the price of one increases,the quantity purchased of the other increases.
• C)When the price of one decreases,the quantity purchased of the other increases.
• D)They are products which are always purchased together.

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Definitions:

Sold Continuously

Refers to items that are sold without interruption over a period rather than in separate, discrete transactions.

Store

A retail establishment that sells goods or commodities to customers over the counter or through other methods.

Input Prices

The costs associated with the purchase of the materials, labor, and other inputs required for production.

Production Function

Represents the relationship between the quantities of productive factors used (inputs) and the amount of product obtained (output).