Question
Which kind of good might not be bought when prices rise?
substitute
inferior good
complement
luxury
substitute
inferior good
complement
luxury
Answers
GPT-4o mini
When prices rise, a **substitute good** might not be bought as much, as consumers might switch to alternatives that are cheaper. However, it’s important to note that **inferior goods** tend to see an increase in demand when consumers' income decreases (which can happen if they are affected by rising prices elsewhere).
**Complement goods** usually see decreased demand when the price of the associated good rises.
**Luxury goods** are typically thought to have a demand that is less sensitive to price increases among affluent consumers, but they may still see decreased sales as prices rise significantly.
In the context of the question, the best answer is **complement** goods, as they are likely to be bought less when the price of the primary good rises.
**Complement goods** usually see decreased demand when the price of the associated good rises.
**Luxury goods** are typically thought to have a demand that is less sensitive to price increases among affluent consumers, but they may still see decreased sales as prices rise significantly.
In the context of the question, the best answer is **complement** goods, as they are likely to be bought less when the price of the primary good rises.