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The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes are
- a)normal goods
- b)complements
- c)substitutes
- d)inferior goods
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
The price of tomatoes increases and people buy tomato puree. You infer...
Explanation:
Substitutes are those goods which can be used in place of each other. When the price of one good increases, demand for the other good increases as people switch to the substitute. This is because the substitute offers similar utility or satisfaction at a lower price.
In the given scenario, when the price of tomatoes increases, people start buying tomato puree instead. This implies that tomato puree and tomatoes are substitutes for each other.
Hence, the correct answer is option C - substitutes.
Summary:
- Substitutes are goods that can be used in place of each other.
- When the price of one good increases, demand for the other good increases as people switch to the substitute.
- In the given scenario, people start buying tomato puree instead of tomatoes when the price of tomatoes increases.
- Therefore, tomato puree and tomatoes are substitutes for each other.
Substitutes are those goods which can be used in place of each other. When the price of one good increases, demand for the other good increases as people switch to the substitute. This is because the substitute offers similar utility or satisfaction at a lower price.
In the given scenario, when the price of tomatoes increases, people start buying tomato puree instead. This implies that tomato puree and tomatoes are substitutes for each other.
Hence, the correct answer is option C - substitutes.
Summary:
- Substitutes are goods that can be used in place of each other.
- When the price of one good increases, demand for the other good increases as people switch to the substitute.
- In the given scenario, people start buying tomato puree instead of tomatoes when the price of tomatoes increases.
- Therefore, tomato puree and tomatoes are substitutes for each other.
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Community Answer
The price of tomatoes increases and people buy tomato puree. You infer...
The answer should be option= c
"substitute goods"
Because a tomato's clear substitute is tomato puree(just like,tomato catch up)
there fore,
here' if the Price of one products is increases then people are substitute there products to any other
same product
"substitute goods"
Because a tomato's clear substitute is tomato puree(just like,tomato catch up)
there fore,
here' if the Price of one products is increases then people are substitute there products to any other
same product
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The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer?
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The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer?.
The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The price of tomatoes increases and people buy tomato puree. You infer that tomato puree and tomatoes area)normal goodsb)complementsc)substitutesd)inferior goodsCorrect answer is option 'C'. Can you explain this answer?.
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