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Question
In case of substitute goods the demand for a good usually move in the ______ direction of the price of its substitutes.
Options
opposite
same
random
none of these
MCQ
Fill in the Blanks
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Solution
In case of substitute goods the demand for a good usually move in the same direction of the price of its substitutes.
Explanation:
Demand for a good varies directly with the price of its substitute. For example, when the price of coffee rises, demand for tea usually rises as consumers switch to tea.
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