What is true of substitute products?
A)When the price of one increases,the quantity purchased of the other decreases.
B)When the price of one increases,the quantity purchased of the other increases.
C)When the price of one decreases,the quantity purchased of the other increases.
D)They are products which are always purchased together.

Question

Quizplus · Accepted Answer

Substitute products are those that can be used in place of each other. When the price of one substitute product increases, consumers are likely to buy more of the other substitute product, as it becomes relatively cheaper. This is why when the price of one increases, the quantity purchased of the other increases.

What Is True of Substitute Products