If an increase in the price of one good leads to an increase in the quantity demanded of another, the two goods are:

Question

Quizplus · Accepted Answer

When an increase in the price of one good leads to an increase in the quantity demanded of another, the two goods are called substitutes. This is because consumers are likely to switch from the more expensive good to the cheaper one, leading to an increase in the quantity demanded of the substitute.

If an Increase in the Price of One Good Leads