If the price of chocolate-covered peanuts increases and the demand for strawberry licorice twists increases,this indicates that these two goods are _____ goods.
A)complementary
B)normal
C)inferior
D)substitute

Question

Quizplus · Accepted Answer

If the price of one good increases and the demand for another good also increases, it indicates that those two goods are substitute goods. As the price of chocolate-covered peanuts increases, people may switch to buying the alternative, which is strawberry licorice twists, causing an increase in demand for the latter.

If the Price of Chocolate-Covered Peanuts Increases and the Demand