Related to the Economics in Practice on page 67: Consumption of quinoa has been on the rise. A grain called teff has been referred to as quinoa's twin and is often consumed in place of quinoa. This would make teff and quinoa ________, and an increase in the price of quinoa should ________ the demand for teff, ceteris paribus.

Question

Quizplus · Accepted Answer

Teff and quinoa are substitutes because they can be used in place of each other. Therefore, if the price of quinoa increases, consumers will likely switch to teff, increasing the demand for teff, assuming all other factors remain constant (ceteris paribus).

Related to the Economics in Practice on Page 67: Consumption