If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A. substituting beef for chicken.
B. substituting chicken for beef.
C. reducing purchases of beef and chicken.
D. increasing purchases of beef and chicken.
Answer:A
If the price of chicken rises and the price of beef does not rise, consumers will respond by:
A. substituting beef for chicken. B. substituting chicken for beef. C. reducing purchases of beef and chicken. D. increasing purchases of beef and chicken.
Explanation: If the price of chicken has risen but the price of beef has not, the quantity of chicken demanded will fall as demanders substitute beef for chicken.