A change in the price of one good, such as staples, may affect the quantity demanded of another good, such as rubber bands.

Name: A change in the price of one good, such as staples, may affect the quantity demanded of another good, such as rubber bands.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the price change of staples may affect the consumer's purchasing power and therefore influence their ability to buy rubber bands or other goods. This is known as the substitution effect.

A Change in the Price of One Good, Such as Staples