Oreo cookies are now extremely expensive to purchase. Instead of buying oreo cookies, i now want to buy chips ahoy. What determinant of demand does this likely fall under?.

1 Answer

  • In economics, the determinant of demand that this scenario fall under , when you go for chips ahoy because Oreo cookies are now extremely expensive is Change in Price of Substitute Good.

    What is Substitute Good?

    A substitute good  can be regarded as product or service that  is been used as alternative for other goods.

    It should be When the price of a substitute good rise, then demand for the other substitute as well will rise.

    • This is referred to as  positive cross price elasticity.

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