If the price of automobiles ___ and as a result the demand for motorbikes falls, this implies that these two goods are substitutes. Options are stays the same, falls, rises
Added by Anupreet K.
Step 1
The decrease in demand for motorbikes could be due to other factors. If the price of automobiles falls and as a result the demand for motorbikes also falls, this implies that these two goods are substitutes. This is because a decrease in the price of one good Show more…
Show all steps
Your feedback will help us improve your experience
Jenny Wu and 85 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Does quantity demanded always fall if the price rises? List several goods or services that you think would remain in demand even if the price rose sharply. Why does demand for those items change very little? (You will learn more about this topic in Section $3 .$
Demand
What Is Demand?
One assumption of the supply and demand model is that all goods bought and sold are identical. Why do you suppose economists commonly make this assumption? Does the supply and demand model lose its usefulness if goods are not identical?
If the demand for a firm’s output unexpectedly decreases, you would expect that its inventory would: a. Increase. b. Decrease. c. Remain the same. d. Increase or remain the same, depending on whether prices are sticky.
Kevin C.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD