Question

Suppose wood planks wood planks is a substitute substitute in production of wood beams wood beams. upper a decrease a decrease in the price of wood planks wood planks will​ ________ the equilibrium price of wood beams wood beams and​ ________ the equilibrium quantity of wood beams wood beams.

Answer 1

Answer: Decrease, decrease

Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.

Answer 2

Answer:

Explanation:

Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.