If tea and coffee are substitutes, a rise in the price of tea will cause a rise in the demand for coffee.

Name: If tea and coffee are substitutes, a rise in the price of tea will cause a rise in the demand for coffee.
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Question

Quizplus · Accepted Answer

If the price of tea rises, consumers may switch to coffee as a substitute, causing an increase in demand for coffee. Therefore, tea and coffee are considered substitute goods.

If Tea and Coffee Are Substitutes, a Rise in the Price