What is the substitution effect? A. All goods have a substitute, and the rise in price for substitutes causes a rise in supply for goods. B. When the price of one good falls, the demand for complements for that good rises, and vice versa. C. When the price of one good rises, the demand for substitutes for that good rises, and vice versa. D. All goods have a complement, and the rise in price for substitutes causes a fall in supply for goods.

C. is correct

Explanation:

When the price of one good rises, the demand for substitutes for that good rises, and vice versa

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

ok this has nothing to do with business