Assertion (A): A fall in the price of tea shifts the demand curve for coffee to the left.
Reason (R): Tea and coffee are substitutes.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Both are true.
Because they are substitutes (R), cheaper tea draws buyers away from coffee, lowering coffee's demand at each price (A).

Concept: Substitute's price and demand
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of demand

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Assertion (A): A fall in the price of tea shifts the demand curve for coffee to the left.Reason (R): Tea and coffee are substitutes.

Explanation

Assertion (A): A fall in the price of tea shifts the demand curve for coffee to the left.
Reason (R): Tea and coffee are substitutes.