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Match the actions with the effects. - replacing a radio with a television during the 1950s - going to a...

11. Match the actions with the effects.
- replacing a radio with a television during the 1950s
- going to a large outlet center to buy reduced-priced jeans
- switching from milk to juice
- switching from a landline phone to a state-of-the-art smartphone
12. Choose the best answer using the table.
Who has the absolute advantage in selling coffees?

Answer

  1. Replacing a radio with a television during the 1950s: new goods effect
    Going to a large outlet center to buy reduced-priced jeans: outlet substitution effect
    Switching from milk to juice: commodity substitution effect
    Switching from a landline phone to a state-of-the-art smartphone: quality change effect
  2. Mike's Café has the absolute advantage in selling coffees because it can produce 20 coffees per hour compared to Susan's Café, which produces 10 coffees per hour.

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