If the demand for olives falls when the price of cheese falls, then we know that cheese and olives are:
A)normal goods.
B)complements.
C)substitutes.
D)inferior goods.

Question

Quizplus · Accepted Answer

Two goods are substitutes if an increase in the price of one good leads to an increase in the demand for the other (and a decrease in the price of one good leads to a decrease in the demand for the other).

If the Demand for Olives Falls When the Price of Cheese