Related to the Economics in Practice on p.69: Consumption of coffee has been on the rise in China.Since tea and coffee are generally considered ________,an increase in the price of coffee should ________ the demand for tea,ceteris paribus.

Question

Quizplus · Accepted Answer

Tea and coffee are generally considered substitutes. This means that if the price of coffee increases, consumers are likely to switch to tea instead, leading to an increase in the demand for tea, ceteris paribus. Thus, the correct answer is A) substitutes; increase.

Related to the Economics in Practice on P