Question
Which of the following are effects that come from creating a substitute good or service?(1 point)
Responses
demand for the original good or service can drop
demand for the original good or service can drop
the price can lower over time
the price can lower over time
Neither A or B
Neither A or B
Both A and B
Responses
demand for the original good or service can drop
demand for the original good or service can drop
the price can lower over time
the price can lower over time
Neither A or B
Neither A or B
Both A and B
Answers
GPT-4o mini
Both A and B.
Creating a substitute good or service can lead to a drop in demand for the original good or service as consumers switch to alternatives. Additionally, as competition increases, the price of the original good or service can lower over time.
Creating a substitute good or service can lead to a drop in demand for the original good or service as consumers switch to alternatives. Additionally, as competition increases, the price of the original good or service can lower over time.