If an increase in quantity demanded of a product reduces the quantity demanded of another, then the two goods are said to be substitutes.

Question

Quizplus · Accepted Answer

This is the definition of substitute goods, which are goods that can be used in place of each other. When the price of one increases, consumers will switch to the other, reducing demand for the first good and increasing demand for the substitute.

If an Increase in Quantity Demanded of a Product Reduces