Question
Which kind of good might not be bought when prices rise?
substitute
complement
inferior good
luxury
Answers
GPT-4o mini
When prices rise, the type of good that might not be bought are **complement goods**. Complement goods are products that are typically consumed together; for example, if the price of coffee rises significantly, people may buy less coffee and, as a result, also buy less cream or sugar, which are complements to coffee.
In contrast:
- **Substitute goods** are alternatives that consumers might turn to if the price of one good rises (e.g., if the price of butter rises, people might buy margarine instead).
- **Inferior goods** are those that people buy more of as their income decreases, and their consumption may not necessarily decline when prices rise.
- **Luxury goods** might still be purchased by individuals who can afford them, even when prices rise, as they are often not essential to daily life.
In contrast:
- **Substitute goods** are alternatives that consumers might turn to if the price of one good rises (e.g., if the price of butter rises, people might buy margarine instead).
- **Inferior goods** are those that people buy more of as their income decreases, and their consumption may not necessarily decline when prices rise.
- **Luxury goods** might still be purchased by individuals who can afford them, even when prices rise, as they are often not essential to daily life.