We observe that people buy less steak and more hamburger when the relative price of steak increases.This indicates that steak and hamburger are

Question

Quizplus · Accepted Answer

The fact that people buy less steak and more hamburger when the price of steak increases suggests that they view steak and hamburger as substitutes. When the price of one good increases, consumers tend to switch to a similar but lower-priced alternative, in this case, hamburger. Therefore, the answer is A - substitutes.

We Observe That People Buy Less Steak and More Hamburger