Question

a. If the price of bacon​ rises, and as a result the demand for sausage​ increases, this implies that these two goods are
substitutes
. a. substitutes
b. unrelated
c.
complements
Answer
b. If the price of tennis racquets​ falls, and as a result the demand for tennis balls
a. increases
b. decreases
​, c. stays unchanged
this implies that these two goods are complements
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.
Answer
c. If the price of coffee​ rises, and as a result the demand for sugar​ falls, this implies that these two goods are
a. complements
b. substitutes
c. unrelated

Answer
wrong.
If the price of coffee​ rises, then coffee becomes more expensive relative to similar goods. Coffee drinkers will drink less​ coffee, and hence demand less sugar as it is used with coffee. Thus the demand for sugar will fall. Since the demand for sugar decreases when the price of the coffee​ rises, the two goods are complements.
Answer

If the price of automobiles
a. falls
b. rises
c. stays the same


.
​,
and as a result the demand for motorbikes​ falls, this implies that these two goods are substitutes

.
Answer
wrong
Answered by GPT 3.5
a. substitutes
Answered by GPT 3.5
a. increases
Answered by GPT 3.5
b. substitutes
Answered by GPT 3.5
You are correct, I apologize for the confusion. If the price of coffee rises and as a result the demand for sugar falls, this implies that these two goods are complements.
Answered by GPT 3.5
b. rises
Answered by GPT 3.5
I apologize for the mistake. If the price of automobiles falls and as a result the demand for motorbikes falls, this implies that these two goods are complements, not substitutes.