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JAMB Economics 1986 Question 15

Question 15

Theory of Demand

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will

  1. A.induce greater demand for beef
  2. B.induce greater demand for fish
  3. C.induce lower demand for fish
  4. D.equate demands for beef and fish.
Show the answer and explanation

Answer: B (induce greater demand for fish)

Explanation

When beef becomes dearer, people switch to its substitute, so demand for fish rises.