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Reading Comprehension: Application Questions

Which of the following best exemplifies the result of product substitution on demand for that product?

Incorrect.

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In this example, there are no available substitutions for cucumbers because crops of other vegetables were ruined.

Incorrect.

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In this example, although there were cheaper substitutions available, the demand for arugula did not drop.

Incorrect.

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Although demand for carrots dropped, it did so despite a decrease in costs. We are looking for an example in which rising costs create a decrease in demand.

Incorrect.

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In this example, we know nothing about the impact of the increased prices on the demand for grapes.

Good work!

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The availability of a substitution, apples, reduced the demand for oranges when their cost increased significantly.

Consumers bought fewer cucumbers after their cost doubled even though a bad harvest ravaged crops of other vegetables.
When a drought caused the price of oranges to soar, consumers began buying more apples and fewer oranges.
Even though cheaper competition entered the market, the strong reputation of the leading organic food farm allowed it to keep its arugula sales high.
Even though the cost of carrots dropped, the availability of other produce pushed their sales further down.
The price of grapes increased since producers of wine bought up much of the stock meant for domestic consumption.