As the price of a good (coffee) falls, the demand for its substitute good (tea) will ______.

Question

KollegeApply · Accepted Answer

As the price of a good (coffee) falls, the demand for its substitute good (tea) will decrease. Explanation: • Coffee and tea are substitute goods. • When the price of coffee falls, people prefer to buy more coffee as it's now cheaper. • As a result, the demand for tea (the substitute) will decrease.

AChoose Your Answer